MNI China Daily Summary: Thursday, July 11

MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

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

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

US EIA:NAT GAS STORAGE +65 BCF TO 3,199 BCF JUL 05 WK

Core Goods Above-Expected, But Headline Weakest Since Pandemic(2/2)

CPI Miss Driven By Comprehensively Slower Services Inflation (1/2)

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

Scotia: CPI Tentatively Favours A Skip

CANADA
  • Scotia note that Canadian inflationary pressures sharply ebbed at the margin and this gives the BoC a little more breathing room to potentially spread out possible further tightening.
  • They would personally hike in July given continued upside risk to trend inflation, but the BoC’s emphasis upon intermeeting data dependence and historical lessons on the fine tuning stages make them doubtful at this point of a back-to-back hike.
  • Scotia still call for a 25bps hike in Q3 but had positioned the call over July versus September as being highly data dependent. At the margin, this data tentatively leans against July.
  • There is clear precedence for BoC policy adjustments not having to go in a straight line with back-to-back steps (e.g. skipping a hike in Sep’18 or skipping a cut in Mar’15).
  • They still want to see the full suite of data before the July decision, including Friday’s BoC surveys plus April and May GDP estimates and then the following Friday’s jobs and wages, but at this stage even post-CPI pricing for a July hike seems high.
Homepage Bank of Canada Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.