Free Trial
JGB TECHS

(H3) Extends Bounce Off Lows

USDCAD TECHS

Pierces The 50-Day EMA

US TSYS

Risk Buoyed Ahead Fed Blackout

NEW ZEALAND

Chris Hipkins Named To Succeed Jacinda Ardern As PM

AUDUSD TECHS

Remains Above Support At The 20-Day EMA

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Goldman Sachs Expect Close Call Between +25BP and Unchanged

PERU
  • Goldman Sachs expect the BCRP decision to be a close call between a 25bp hike driving the policy rate to 7.25% (their modal call) and a hold-and-monitor decision coupled with hawkish signals that the MPC is open to resuming tightening if necessary.
  • In their assessment, a follow-up 25bp hike is warranted given a backdrop where (1) inflation is still tracking considerably above the demanding 1.0%-3.0% central bank’s target band; (2) core ex-food & energy and services inflation gained renewed momentum since August; (3) inflation expectations for end-2022 and end-2023 drifted further above target; (4) the FOMC signalled a longer cycle with a higher terminal rate; (5) unsettled domestic political and policy environment.

111 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Goldman Sachs expect the BCRP decision to be a close call between a 25bp hike driving the policy rate to 7.25% (their modal call) and a hold-and-monitor decision coupled with hawkish signals that the MPC is open to resuming tightening if necessary.
  • In their assessment, a follow-up 25bp hike is warranted given a backdrop where (1) inflation is still tracking considerably above the demanding 1.0%-3.0% central bank’s target band; (2) core ex-food & energy and services inflation gained renewed momentum since August; (3) inflation expectations for end-2022 and end-2023 drifted further above target; (4) the FOMC signalled a longer cycle with a higher terminal rate; (5) unsettled domestic political and policy environment.