TRUDEAU SAYS IT LOOKS LIKE BOC WILL BE LOWERING RATE AGAIN

MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

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 on BCRP: 50bp Hike Despite Somewhat Dovish Guidance

PERU
  • GS expect the MPC to deliver another 50bp hike, to a still accommodative 2.00% and with the real ex-ante policy rate still at historical low levels.]
  • Robust growth, higher than expected inflation, and further increase in inflation expectations support the call for another 50bp hike despite last meeting's somewhat dovish guidance.
  • Inflation surprised significantly to the upside. Consumer prices rose 0.58% mom in October, vs consensus expectations for a +0.24% mom increase. Inflation has exceeded the market consensus in all months since May. Additionally, short- and medium-term inflation expectations are also tracking visibly above the 2.0% target midpoint.
  • In their assessment, additional hikes are warranted given the positive growth momentum and the deterioration of current and prospective inflation. The still very low policy rate level (highly negative real policy rate), the recent large inflation surprises, deteriorating short- and medium-term inflation expectations, heightened political and policy uncertainty (pressuring the capital account; capital flight), and broad risk management considerations justify a frontloaded path towards monetary policy normalization from the current very high level of accommodation.

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.