CHINA SETS YUAN CENTRAL PARITY AT 7.0979 MON VS 7.0967

DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

Japan Feb Machine Orders +7.7% M/M

MNI JAPAN FEB CORE MACHINE ORDERS +7.7% M/M; JAN -1.7%

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

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

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

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Goldman Sachs See Close Call Decision Thursday

PERU
  • Goldman Sachs expect the MPC to hike 25bp, to 8.0%, but see the decision as a close call between a 25bp hike and a hold-and-monitor decision coupled with hawkish signaling that the MPC would be open to resuming tightening if warranted. A 25bp hike may be followed by language and forward guidance suggesting the potential end of the tightening cycle.
  • GS list six factors which warrant the need for an additional 25bp hike: (1) inflation reached a six-month high in Jan and may be further strained by disruptions to food supply given ongoing social unrest; (2) core ex-food & energy inflation reached a new cyclical high and continues to track above target; (3) short-term inflation expectations deteriorated sharply; (4) Moody’s cut the sovereign rating outlook to Negative from Stable on the back of growing political and social tension, potentially exacerbating FX pressures; (5) the domestic political and policy environment remains highly unsettled with a growing possibility of noisy early elections; and (6) somewhat hawkish statements by Governor Velarde arguing that recurring social protests may weigh on inflation (he also mentioned their potential impact on growth).
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.