MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: JAPAN JUNE SERVICES PPI +3.0% Y/Y; MAY REV +2.7%

MNI BRIEF: Japan June Services PPI Rises 3.0% Vs. May's 2.7%

US Treasury Auction Calendar

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

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

Morgan Stanley on BCRP: 50bp Hikes Through Year-End

PERU
  • MS economists expect the BCRP to deliver a 50bp hike to 2.00% in line with what the market is pricing via the implied forward yield in USD/PEN.
  • This comes on the back of higher headline inflation, pushed mainly by food inflation, fuel prices and, in the month of October, home prices. However, these pressures on non-core items have been translating into higher core measures (currently at 2.8% Y/y, close to the 3%Y/y upper limit of the band), evidencing second-round effects.
  • On top of that, inflation expectations remain at 3.61% Y/y (up from 3.1% Y/y in August), showing only a slight moderation from 3.64% Y/y in September. In response to the deterioration in inflation dynamics, MS expect the central bank to keep the current hiking pace of 50bp, despite not committing to hikes in consecutive meetings.
  • Continued hikes of 50bp through year-end, should continue to provide an additional flattening bias to the Soberanos curve. The recent approval of the cabinet and rhetoric from the administration prioritising governability provide a continued signalling of moderation, and this should support local markets in the near term.
  • Their quantitative models suggest that PEN valuations look fairly cheap compared to the rest of EM, and believe the sol could continue to outperform other metal exporters.

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.