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Light LatAm Calendar With Attention On US Inflation

LATIN AMERICA
  • A very light LatAm docket on Tuesday with just Mexico nominal wages and Colombia consumer confidence data tentatively scheduled for release. Obvious focus on the US inflation report for May where consensus puts core CPI at 0.4% M/M but with skew to the downside.
  • As highlighted earlier, the People’s Bank of China cut the 7-day repo rate by 10bps on Tuesday due to increasing economic headwinds. The key policy rate was reduced to 1.9% from 2%, the first cut since last August. MNI reported the possible cut last week, citing advisors and analysts. Market speculation over a reduction to the medium-term lending facility’s rate, due this Thursday, has also risen after today’s action.

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