BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

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

New Home Sales Activity And Prices Continue To Cool

US EIA: CRUDE OIL STOCKS EX SPR -3.74M TO 436.5M JUL 19 WK

Services PMI Gains Continue To Diverge From Soft Manufacturing

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

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

JPMorgan on Pension Withdrawal Bills

CHILE
  • The government managed to prevent a fifth pension fund withdrawal in exchange for a legislative defeat. The government achieved its initial objective of preventing a new unrestricted 10% pension fund withdrawal (PFW). Yet, the bill sponsored by the government for a restricted withdrawal was also rejected.
  • In all, the outcome is not negative for the government, as it could be interpreted that the rejection of both bills strengthens the position of Finance Minister Marcel who firmly opposed pension savings withdrawals.
  • Moreover, following the rejection, the regulation of Congress mandates that bills associated to pension withdrawals could not be discussed again for a year, what limits diminishing in principle the risk for a new pension fund withdrawal in the near term.
  • On the other side, if the legislative door for additional pension fund withdrawals remains closed for a year, the stress on the government for additional fiscal resources only mounts to accommodate the impact of elevated inflation as well as the economic deceleration ahead.
  • So far, the government implemented a US$3.7bn program, and the government bill that was rejected yesterday entertained additional support to households for about US$3.0bn.
  • JPM foresee increased pressure on the administration for a similar amount in fiscal support ahead to compensate for the restricted bill rejection.
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.