MNI China Daily Summary: Wednesday, July 31

MNI BRIEF: BOJ To Raise Further, No Clues on Timing - Ueda

MNI BRIEF: BOJ's FY26 Inflation View Flat; Upside Risk To FY24, 25 Prices

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

MNI BRIEF: China July PMI Contracts For Third Straight Month

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

Flash Inflation In-Line With Tracking; Services Softens But Only Slightly

MNI: EUROZONE JUL FLASH HICP +2.6% Y/Y

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

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MNI BoC Review, Jun'23: BoC Resumes Hikes As Data Wins Out

MNI: BOC's Macklem Ties Low-Rate Pledge to Tackling Inequality
MNI: BOC's Macklem Ties Low-Rate Pledge to Tackling Inequality

EXECUTIVE SUMMARY

  • The BoC hiked 25bps to 4.75% in a decision that markets saw as 50/50 and only a minority of analysts, including MNI, called for.
  • Language was particularly hawkish, with a focus on excess demand persistence and a risk that inflation could become “stuck materially” above target after minimal progress in monthly run rates.
  • It saw markets and analysts alike lean towards a follow-up hike in July, with 2Y GoC yields surging to fresh highs since 2007 and extending an already strong approach to the meeting. CAD impact was limited though, as flagged beforehand after the apparent recent trimming of net shorts.
  • Dep Gov Beaudry updates with the Economic Progress Report later today, after there are five data-packed weeks that will determine whether yesterday’s decision was fine-tuning or a resumption of hikes.

PLEASE FIND THE FULL REPORT HERE:

BOCReviewJun2023.pdf

Central Bank ReviewHomepageBoC - ReviewCentral Bank ReportsMarketsCanada Bank of Canada Market News
Central Bank ReviewHomepageBoC - ReviewCentral Bank ReportsMarketsCanada Bank of Canada Market News

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