CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Morgan Stanley On Peru Central Bank

PERU
  • MS expects the BCRP to hike 25bp to 0.75% in its upcoming meeting, continuing its hiking cycle, started in the August meeting. The reduction in monetary stimulus would come on the back of not only higher headline inflation, but also pressures on core inflation.
  • With August headline inflation printing at 4.95% (1.95pp above the upper band of the target range) and core inflation printing at 2.39% (above the 2% target), August 12m-ahead inflation is likely to be pressured upward from July's 3.03%.
  • The real policy rates (Policy rate - 12m Ahead Inflation) have reduced significantly despite the 25bp hike in the last meeting. Though not their economists' base case, these developments suggest a significant risk of seeing a larger than 25bp rate hike at the upcoming meeting.
  • A more hawkish BCRP in the coming months, as implied by their economists' monetary policy forecast path revision should provide some support for PEN in the near term.
  • It should also support some flattening in local rates, though this would likely be more front-end-driven, with the long end potential seeing some benefits in regards to the anchoring of long-run inflation expectations.
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.