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Regional CPI Data Expected Later This Week

LATAM
  • There are no major economic data releases in LatAm on Wednesday, however, it is worth noting that Mexico CPI is scheduled for tomorrow, whilst Colombia and Chile CPI data will be published on Friday.
  • ECB’s Knot says that markets risk underplaying hiking chances. Investors’ bets against a rate hike next week are “maybe” underestimating the likelihood of it happening, the Governing Council member Klaas Knot said. While a slowdown in the euro zone’s 20-nation economy is sure to dampen demand, updated inflation projections won’t differ much from the last round in June, he added (BBG).
  • Australia’s economy grew 0.4% in Q2, compared with 0.2% in Q1, beating expectations of a 0.3% rise. 2Q GDP grew 2.1% y/y, higher than the 1.8% expected, but down from Q1’s 2.3%. (MNI)
  • Following the yen setting a fresh 10-month low against the USD overnight, Japan issued its strongest warning over sharp currency movements in weeks. The nation’s top currency official said he won’t rule out any options if current moves in the exchange rate continue (BBG).
    • Separately, BOJ Board Member Hajime Takata said on Wednesday that the BOJ must continue patiently with its easing policy as the economy remains far from achieving the 2% inflation target in a sustainable and stable manner. The performance of overseas economies also poses a downside risk (MNI).
  • Property developers were supported by a front-page commentary piece in the Securities Times, suggesting that the country should drop home-buying restrictions in regions other than top-tier cities with the ‘hottest’ property markets.

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