MNI China Daily Summary: Wednesday, July 3

MNI BRIEF:BOJ Q1 Output Gap Hits 16th Negative Reading In Row

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

Services PMI points to wage bills increasing operating expenses

MNI: UK JUNE FINAL SERVICES PMI 52.1 (FLASH: 51.2); MAY 52.9

MNI: EUROZONE JUNE FINAL SERVICES PMI 52.8 (FLASH: 52.6); MAY 53.2

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

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

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

Schnabel Not Ruling Out Further Rate Hikes

ECB

ECB's Schnabel has delivered a speech in St Louis in the US. Given the current monetary stance, Schnabel stated that inflation should be back to 2% by 2025. The long period to get inflation back to target reflected stickier underlying inflation conditions. Labor shortages and a higher proportion of service in aggregate activity are complicating factors from an inflation standpoint, Schnabel stated (RTRS).

  • Two conditions have to be met to bring inflation back to the ECB's target, lower unit labor costs and firms have to absorb higher wages via profit margins.
  • Inflation expectations are also fragile, while fresh supply side shocks (with the Middle East situation raised as one risk) could cause fresh destabilization to the inflation outlook. Therefore, the door to future rate hikes can't be closed (see this BBG link).
  • Finally, the Euro area is stagnating but not in a deep recession.
EM BulletFixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign Exchange BulletsEuropean Central Bank (ECB) Market News

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.