MNI: PBOC Net Injects CNY57 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1315 Fri; -0.52% Y/Y

CHINA PBOC CONDUCTS CNY59 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.1315 FRI VS 7.1285

MNI BRIEF: Fed's Bowman Wants A More Effective Discount Window

MNI BRIEF: Fed Risks Soft Landing If It Doesn’t Cut - Goolsbee

Japan Jun Core CPI +2.6% Y/Y; Energy Price Up

MNI BRIEF: Japan June Core CPI Rises 2.6% Vs. May +2.5%

CLARIFY: JAPAN JUNE SERVICES PRICES +1.7% Y/Y; MAY +1.6%

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

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

Santander Expect At Least A 50BP BCCh Cut In July

CHILE
  • Santander reiterate that the big surprise was the minority vote of two directors who opted for a 50bp cut in June, marking the first time in almost a year that there is no consensus on the RPM which sets a strong precedent for upcoming decisions. In addition, the statement was explicit in stating that if the recent trends for activity and inflation continue, "the TPM will begin a process of reduction in the short term."
  • The IPoM for June reported a scenario with less activity and inflation than that contemplated in March and with more limited and downward-biased inflationary risks. In addition, the corridor for the MPR has moved lower and its midpoint contemplates cuts in both July and September of this year.
  • Santander estimate that the upcoming Imacec and CPI data that the Board will see before its next meeting will reaffirm the diagnosis of a sharp slowdown in the economy and faster inflationary convergence towards 3%.
  • This will allow the BCCh to begin the cuts at the end of July, with a reduction of at least 50bp. Then, there would be drops in each of the following meetings, with which the rate would close 2023 between 7.75% and 8%.
  • Unlike advanced countries, the possibility of initiating the monetary normalization process in Chile is due in large part to the quick and aggressive response of the Central Bank in the phase of monetary tightening, where it reacted on time to the first signs of an increase in inflation.
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.