MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

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

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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MNI BoK Preview - May 2023: On Hold Again

EXECUTIVE SUMMARY

  • None of the 17 economists surveyed by Bloomberg expect a change from the BoK at tomorrow’s policy meeting. The policy rate is expected to be held steady at 3.50%, which is also our firm bias. This would leave the policy rate on hold for the third straight meeting, no doubt leading to speculation the tightening cycle is now complete.
  • Since the last policy meeting, headline inflation pressures have continued to ease. The latest y/y headline print was 3.7% (for April), well down from the peak of 6.3% in July last year. Base effects, coupled with a more benign to softer commodity price backdrop, suggest a further easing in y/y momentum as progress into the second half of the year. Inflation expectations, of households, also continue to track lower.
  • Some indicators for growth are on the improve, but fresh uncertainty around the outlook for external demand from both China and the US may leave the BoK cautious. Governor Rhee may push back against any talk of near term rate cuts though, given core inflation is coming down at a slower pace than headline.
  • Full preview:

    • BoK Preview - May 2023.pdf


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