MNI: POWELL SAYS PCE INFLATION CAME IN LINE WITH EXPECTATIONS

MNI China Daily Summary: Friday, March 29

MNI: PBOC Injects Net CNY148 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.0950 Fri; -4.70% Y/Y

CHINA PBOC INJECTS CNY150 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.0950 FRI VS 7.0948

MNI: US FEB PERSONAL INCOME +0.3%; NOM PCE +0.8%

HICP Tracking at 2.4%Y/Y - One tenth below consensus

HICP 2 tenths softer than expected, but partly on clothing prices

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

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JPM See Rates as High as 6.50% Should PFW4 Pass Congress

CHILE
  • JPMorgan discount more tightening ahead for the BCCh, with the board now projecting the policy rate to converge with its neutral level sooner than had been projected in September.
  • They believe that the path ahead is very dependent on the fate of the fourth pension fund withdrawal in the Senate. Given the magnitude and extension of the fiscal transfers and liquidity support already deployed together with its impact on the labor market, JPM forecast inflation forecast close to the CBC target ceiling by end 2022 despite the anticipated deceleration in economic growth ahead. This would be aggravated if PFW4 is finally passed in Congress, implying faster tightening and higher terminal rates.
  • JPM sees two central paths for the policy rate, conditional on PFW4. If approved, they pencil in the policy rate at 3.75% and 6.5% by December 2021 and 2022, respectively. If the pension fund withdrawal does not pass, they see a shallower path, with the policy rate at 3.25% and 5.0% by December 2021 and 2022, respectively.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
EM BulletHomepagemarkets-real-timeBulletEmerging Markets News
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
EM BulletHomepagemarkets-real-timeBulletEmerging Markets News

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