MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

MNI: JAPAN JUNE SERVICES PPI +3.0% Y/Y; MAY REV +2.7%

MNI BRIEF: Japan June Services PPI Rises 3.0% Vs. May's 2.7%

US Treasury Auction Calendar

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

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GS Above Consensus For April CPI

CANADA
Homepagemarkets-real-timeCanadaGoldman Sachs Market News Bank of Canada Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Goldman Sachs look for headline CPI inflation of 0.30% M/M (SA), largely reflecting higher energy prices. It yields a smaller than more broadly expected decline from 2.9% to 2.81% Y/Y (cons 2.7).
  • They see CPI ex food & energy unchanged at 0.27% M/M (SA) from their top-down approach, or 0.23% M/M bottom-up.
  • Of note, “we expect rent inflation to remain firm at +0.9% mom sa as existing rents continue to catch-up to average asking rents in an imbalanced housing market.”
  • They see two risks: “On one hand, the increase in the carbon tax that took effect on April 1st could affect non-energy items more than expected. That said, academic studies have generally found limited pass-through from carbon taxes to core items. On the other hand, a March Easter poses some downside risks to our April forecast if seasonal adjustments are excessive.”
  • They currently expect the BoC to cut 25bp in June with a quarterly pace thereafter until the policy rate reaches 3.25% in 3Q25.
160 words

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.
  • Goldman Sachs look for headline CPI inflation of 0.30% M/M (SA), largely reflecting higher energy prices. It yields a smaller than more broadly expected decline from 2.9% to 2.81% Y/Y (cons 2.7).
  • They see CPI ex food & energy unchanged at 0.27% M/M (SA) from their top-down approach, or 0.23% M/M bottom-up.
  • Of note, “we expect rent inflation to remain firm at +0.9% mom sa as existing rents continue to catch-up to average asking rents in an imbalanced housing market.”
  • They see two risks: “On one hand, the increase in the carbon tax that took effect on April 1st could affect non-energy items more than expected. That said, academic studies have generally found limited pass-through from carbon taxes to core items. On the other hand, a March Easter poses some downside risks to our April forecast if seasonal adjustments are excessive.”
  • They currently expect the BoC to cut 25bp in June with a quarterly pace thereafter until the policy rate reaches 3.25% in 3Q25.