FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Deutsche Bank Expect BCCh To Pause Until December

CHILE
  • Deutsche Bank maintain the expectation that the BCCh will now favour pausing the easing cycle until December, when they expect the Fed to initiate policy normalisation. Thus, DB still expect the policy rate to close 2024 at 5.5% and next year at 5%. Given the uncertainty over the timing of policy normalisation by the FOMC, lowering Chile’s policy rate below the Fed’s would pose risks to the CLP, financial stability and pose further upward risks to the inflation outlook.
  • Looking ahead, DB expect a more cautious BCCh, continued USD sales by the finance ministry, favourable valuations, and a relatively benign political landscape – at least compared to regional peers – to support CLP. DB wouldn’t be surprised if USDCLP reaches levels around 900 in the coming weeks, barring any negative surprise in copper.
  • On rates, with the BCCh on a cautious path, DB cut their 2Y cash receiver position a couple of weeks ago. They favour bear-flattening by switching out of BTP 2028s into BTP 2032s and cash vs. IRS on dislocated pricing and further support for local fixed income and FX on the expectation of a more cautious stance.
EM BulletHomepagemarkets-real-timeBulletEmerging Market News
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.