Free Trial
USDCAD TECHS

Impulsive Rally Extends

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

EURJPY TECHS

Price Is Below The 50-Day EMA

US

Late Corporate Credit Update

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Scotiabank Say BCCh Should Hike No Less Than 75BP Following CPI Data

CHILE
  • Once again, increases in goods and services prices were highly diffused. Around 63% of the products in the consumption basket rose m/m, mainly owing to inflationary inertia; an economy in which consumption shows little sign of slowing, and a multilateral depreciation of the CLP that accelerated in July.
  • Scotiabank estimate that inflation for August will be between 1.0 and 1.1% m/m, reaching its year-on-year historical maximum of around 14%. Among the main contributions, Scotiabank anticipate an additional increase in electricity fares, along with higher gasoline and diesel prices and positive contributions of food, mainly those affected by the recent depreciation of the CLP, such as meat and other imports.
  • For the central bank, the current conjuncture unequivocally points to upward adjustments in the benchmark rate. Scotiabank reiterate an adjustment of (no less than) 75 basis points in the September meeting that would place the reference rate at 10.5%, pending additional increases of 50 bps, conditional to the absence of new inflationary surprises.
160 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Once again, increases in goods and services prices were highly diffused. Around 63% of the products in the consumption basket rose m/m, mainly owing to inflationary inertia; an economy in which consumption shows little sign of slowing, and a multilateral depreciation of the CLP that accelerated in July.
  • Scotiabank estimate that inflation for August will be between 1.0 and 1.1% m/m, reaching its year-on-year historical maximum of around 14%. Among the main contributions, Scotiabank anticipate an additional increase in electricity fares, along with higher gasoline and diesel prices and positive contributions of food, mainly those affected by the recent depreciation of the CLP, such as meat and other imports.
  • For the central bank, the current conjuncture unequivocally points to upward adjustments in the benchmark rate. Scotiabank reiterate an adjustment of (no less than) 75 basis points in the September meeting that would place the reference rate at 10.5%, pending additional increases of 50 bps, conditional to the absence of new inflationary surprises.