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Session Highlighted By BanRep and BCCh Rate Decisions

LATAM
  • The calendar is highlighted by rate decisions in both Colombia and Chile. Otherwise, there are no major data releases scheduled in LatAm on Tuesday.
  • JAPAN: The Bank of Japan board on Tuesday decided unanimously to keep yield curve control policy, including the negative interest rate, and pledged to continue patiently with monetary easing amid high uncertainty on economies and financial markets. Governor Kazuo Ueda failed on Tuesday to lay any foundation for an exit from easy policy at the next meeting in January, saying it was still difficult for to demonstrate a high probability of achieving the 2% inflation target.
  • JPY: The JPY is sliding against all others in G10, prompting USD/JPY to rise back toward the Y145.00 handle and further work against the sharp downtick posted on the Wednesday session last week.
  • CHINA: MNI (Beijing) - China’s reference lending rate will likely remain unchanged in December as elevated wholesale money market rates increase bank financing costs, while strong government debt issuance drains liquidity from the interbank market, analysts and economists told MNI.
  • India pushed back against the International Monetary Fund for saying the central bank’s intervention in the foreign-exchange market was excessive, implying that the country was trying to influence the level of the rupee.

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