MNI BRIEF: Talks On France Budget Promising - EU Gentiloni

MNI INTERVIEW2: ECB Should Keep Trimming Balance Sheet-Kazaks

RPT-MNI POLICY: Cracks On MPC But Gradualism Holds

RPT-MNI INTERVIEW: Banxico To Continue Easing Through 25-Tapia

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

MNI NBP WATCH: Rates Held As Energy, Wages Push Up Prices

EZ/UK Bond Supply Calendar: EU Synd, NE, AS, UK, DE Due Tuesday

MNI: EUROZONE AUG RETAIL SALES +0.2% M/M, +0.8% Y/Y

MNI: GERMANY AUG FACTORY ORDERS -5.8% M/M

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

PERU: JP Morgan Expect 25bp BCRP Rate Cut On Thursday

PERU
PeruEM BulletBulletGlobalEmerging Market NewsRegion
  • JP Morgan maintain their call for the BCRP to continue easing monetary conditions this week, cutting the policy rate by 25bp to 5.0%. In their central scenario, the policy rate converges to 4.5% by year-end, with a terminal level of 4.0% by Q2 2025.
  • The downward surprise in September CPI led annual inflation to plunge below the 2% target, to 1.78% y/y. JPM notes that the main reason for both the monthly deflation and forecast miss was food prices, which collapsed by 0.97%m/m, and contributed -24bp to headline CPI variation on the month.
  • As relevant from a monetary policy standpoint, core inflation recorded no change on the month, with the annual rate converging to 2.64% y/y. Similar to headline CPI, when adjusting for seasonality, the 3-month average ran at a 0.83% annualised pace, below the 1-3% policy target range floor.
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.
  • JP Morgan maintain their call for the BCRP to continue easing monetary conditions this week, cutting the policy rate by 25bp to 5.0%. In their central scenario, the policy rate converges to 4.5% by year-end, with a terminal level of 4.0% by Q2 2025.
  • The downward surprise in September CPI led annual inflation to plunge below the 2% target, to 1.78% y/y. JPM notes that the main reason for both the monthly deflation and forecast miss was food prices, which collapsed by 0.97%m/m, and contributed -24bp to headline CPI variation on the month.
  • As relevant from a monetary policy standpoint, core inflation recorded no change on the month, with the annual rate converging to 2.64% y/y. Similar to headline CPI, when adjusting for seasonality, the 3-month average ran at a 0.83% annualised pace, below the 1-3% policy target range floor.