MNI: Canada Has CAD2.9B Q1 Budget Deficit Vs Prior Surplus

CANADA Q2 ANNUALIZED GDP +2.1% VERSUS +1.7% EXPECTED

MNI China Daily Summary: Friday, Aug 30

MNI: US JUL PERSONAL INCOME +0.3%; NOM PCE +0.5%

MNI BRIEF: PBOC Bought Net CNY100 Billion CGBs In August

MNI BRIEF: China's Outstanding Mortgage Loans Fall Further

MNI: BAKER HUGHES US RIG COUNT 583; OIL RIGS 483; GAS RIGS 95

EZ/UK Bond Supply Calendar: UK, ESM Syndis; AS, DE Due Tuesday

MNI Chicago Report™: 27% Have Contingency Plans Due to Adverse Weather

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

UK: Week Ahead

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

JPMorgan on Chile Cabinet/BCCh Decision

CHILE
  • President-elect Boric’s cabinet appointments suggest moderation of the economic agenda, which helps to narrow the prevailing fiscal premium. The appointment of well-reputed CBC Governor Marcel as new MoF is a very positive development, reinforcing our expectations for a moderation of the ambitious economic and fiscal agenda laid down during the campaign.
  • The Marcel appointment along with a more conciliatory cabinet helped to further decompress fiscal risk premium weighing on asset prices. But the new Cabinet will still face challenges ahead. President elect-Boric will need extreme political craftiness to maintain cohesion in such a diverse cabinet, while building bridges with the center-left parties with no cabinet representation as well as center-right lawmakers to try to push ahead reforms in Congress.
  • While they wait for the confirmation of the new CBC Board Governor, JPM expect the central bank’s reaction function to be unaltered under the new leadership. The fiscal premium decompression should not prevent the CBC from tightening monetary conditions further, on the prevailing uncertainty related to inflation persistency stemming from the fiscal and household liquidity accommodation deployed in 2021. JPM maintain their base case for the CBC to hike 125bp on Wednesday, and flag the risk is skewed to 150bp.
  • They also maintain in their base case the monetary policy rate converging to 6.0% by March.
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.