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

Goldman Sachs: Hurdle For Imminent Acceleration Of Cutting Pace Remains High

PERU
  • Goldman Sachs expect the MPC to lower the policy rate by 25bp to 6.25%, marking the sixth 25bp cut in a row. GS believe that the central bank will take comfort in the visible progress on the disinflation process and headline inflation now standing at its lowest level since May 2021.
  • Core ex-food & energy inflation, along with one-year ahead inflation expectations by economists surveyed, declined further within the target band. With the ongoing normalization of food supply and a negative output gap, inflation is well set to return to the target band shortly—potentially as early as February—supporting dialling back further the level of policy restraint through a moderate rate cut.
  • GS continue to view the hurdle for an imminent acceleration in the pace of cuts as high, on the back of the lowest policy rate differential (both in nominal and real terms) in the LA-IT5 space, and an almost 3% currency depreciation against the USD since the last MPC meeting, making the PEN one of the worst-performing LatAm currency over that span. Maintaining the pace of cuts is also consistent with the reiterated hawkish statement in previous MPC communiques.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.