MNI China Daily Summary: Monday, July 1

MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

Sequential Inflation Momentum Appeared To Slow In June

HICP Steady As Expected; CPI Ticks Lower As State Data Indicated

MNI: GERMANY JUL CPI +2.2% Y/Y

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

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

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January CPI Expected to Moderate, Focus to Look Beyond Median and Trim Measures

CANADA DATA
  • Markets expect Canadian CPI to moderate in January – with headline Y/Y at 3.3% (Prev. 3.4%), 0.4% M/M NSA (Prev. -0.3%). The trim core measure is expected to slow to 3.6% from 3.7% prior.
  • BoC communications from late January centred on how the discussion is shifting away from whether the policy rate is restrictive enough to how long it needs to stay at the current level, a point reiterated by Dep Gov Mendes on Tuesday. Mendes added that inflation is still too high and underlying inflation pressures are still too broad.
  • This brings us to Gov. Macklem’s remarks at the January press conference when MNI asked about the shift in language to underlying rather than core inflation. “It’s more of a concept than a measure and reflects a number of things. The Bank's preferred measures of core inflation (CPI-trim, CPI-median) are a very important element), but we also look at other measures such as CPIxFE, CPIX and the breadth of price gains. Those are some of the key things we’re looking at as we assess the trend - we’re looking for continued evidence that inflationary pressures are easing with clear downward momentum.”
  • To this end, we expect focus on metrics beyond just the BoC’s previously preferred median and trim measures. Different metrics have been pointing to a wide range recently, with the average of median and trim at 3.8% annualized over six months and CPIxFE at 3.7%, but CPIX within the 1-3% target band at just 2.5%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange BulletsCanada Bank of Canada Market News
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange BulletsCanada Bank of Canada Market News

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