MNI BRIEF: Canadians Fuzzy On How BOC Hikes Slow CPI, Government's Role

CANADA FLASH MAY GDP +0.1% ON FACTORIES AND REAL ESTATE

MNI China Daily Summary: Friday, June 28

MNI BRIEF: BCB Evaluating Real Depreciation Impacts - Galipolo

MNI BRIEF: PBOC Pledges to Curb Any Overshoot Of The Yuan: MPC

MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

MNI: BAKER HUGHES US RIG COUNT 581; OIL RIGS 479; GAS RIGS 97

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK Bond Supply Calendar: BoE APF on Monday

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

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

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

Inflation Data, Expectations Both Bolster Case For 50BP Selic Rate Cut

BRAZIL
  • IBGE said the deflation in the month to mid-July was mainly driven by lower housing and food and beverage costs, whose declines were partially offset by an increase in transportation prices. With the annual reading now at 3.19%, officials will likely ponder a more aggressive start to the easing cycle, with a decision due next Wednesday.
  • Furthermore, the latest central bank survey showed reductions, albeit moderate, for inflation forecasts across all time horizons to year-end 2025, proving a re-anchoring of both short- and medium-term expectations.
  • The DI swaps curve has reacted accordingly on Tuesday, with swap rate contracts expiring in Jan-25 falling by as much as 13bps and the curve shifting lower by between 8-13bps.
  • For the currency, there has been some moderate downward pressure but as noted in our previous note from Commerzbank, USDBRL will continue to scan as an attractive short given the carry dynamics and the expected cautious approach to monetary easing from the central bank.
  • Outside of the Fed/ECB rate decisions this week, the domestic docket includes June current account data, outstanding loans and job creation & unemployment rate figures. Industrial production data is due early next week.
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.