MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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Goldman Sachs: Expects Rates to Rise to 8.50% by Year-End

BANXICO
  • The decision was in line with GS’s call and the broad market consensus, and in our assessment, the post-meeting policy statement is hawkish. Not only was there a dissenting vote for a bolder 75bp but the MPC stated that at the next meeting it will evaluate adapting more forceful measures to attain its target.
  • For the MPC the top 3 upside risks to inflation are (1) persistence of core inflation “at high levels”; (2) external inflationary pressures driven by the covid pandemic; and (3) higher agricultural & energy price pressures due to the recent geopolitical conflict.
  • We expect the MPC to hike another 50bp at the June 23 meeting, to 7.50% and to drive the policy rate to 8.50% by end-2022, given the recent high headline and core inflation prints, highly disseminated upward price pressures, and deteriorating inflation expectations. In our assessment, there is a growing risk of bolder 75bp rate hike in June and overall a deeper hiking cycle in 2022.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
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MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

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