MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

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

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

Activity data stronger-than-expected; little impact on near-term monpol

MNI: GERMANY JUNE FINAL HICP +2.5 % M/M, +0.2% Y/Y

MNI: GERMAN JUN 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

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

Macro Since March FOMC - Inflation: Soft Data One Area Of Hope [3/3]

US
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • If there have been any welcoming signs on the recent inflation front for the Fed, it’s in soft data.
  • The April preliminary PMIs showed service providers reporting the second-lowest overall cost increase for three-and-a-half years and slower charge inflation across both manufacturing and service sectors.
  • It built on the Fed’s Beige Book last week noting “another frequent comment was that firms’ ability to pass cost increases on to consumers had weakened considerably in recent months, resulting in smaller profit margins” whilst the March ISM Services release saw a surprise slide in prices paid to 53.4 from 58.6 for its lowest since the pandemic.
  • However, the stubborn persistence in the hard data suggests the burden of proof is now to the downside, with likely multiple lower inflation readings and a higher unemployment rate needed to entertain near-term rate cuts.

138 words

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.
  • If there have been any welcoming signs on the recent inflation front for the Fed, it’s in soft data.
  • The April preliminary PMIs showed service providers reporting the second-lowest overall cost increase for three-and-a-half years and slower charge inflation across both manufacturing and service sectors.
  • It built on the Fed’s Beige Book last week noting “another frequent comment was that firms’ ability to pass cost increases on to consumers had weakened considerably in recent months, resulting in smaller profit margins” whilst the March ISM Services release saw a surprise slide in prices paid to 53.4 from 58.6 for its lowest since the pandemic.
  • However, the stubborn persistence in the hard data suggests the burden of proof is now to the downside, with likely multiple lower inflation readings and a higher unemployment rate needed to entertain near-term rate cuts.