MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1312 WEDS VS 7.1291

MNI BRIEF: 'Noise' Driving Economic Deterioration- Campos Neto

MNI China Daily Summary: Tuesday, July 2

Australia May Total Dwelling Approved +5.5%

Australia May Retail Trade +0.6%

MNI: AUSTRALIA MAY RETAIL SALES +0.6% M/M

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

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

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Powell Asked On Other (Non-Hike) Factors Affecting Inflation

FED
  • Q: What share of the credit for easing inflation would you give to factors that don't stem directly from rate hikes? eg energy prices
  • A: The pandemic inflation surge resulted from elevated demand and supply constraints, and we've always expected that the disinflationary process would stem from both the normalization in those conditions, and from restrictive monetary policy.
  • Headline has come down sharply on energy and food prices reversing.
  • Core there's been a role for both factors - for goods, normalization of supply conditions, and the reversal of spending back into services away from goods. But there's a role for demand, as loans etc are more expensive. Housing services inflation is starting to move down, clearly higher rates have slowed the housing market.
  • Monetary policy is working about as we expect and we think it will play an important role going forward, in particular in non-housing services ,where we think that's where the labor market will be a very important factor.
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