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Session Highlighted By Fed and BCB Rate Decisions

LATAM
  • Brazil’s central bank are unanimously expected to maintain the 50bp pace of monetary easing, taking the Selic rate to 12.75%. Unemployment data for Uruguay and Argentina highlights a quiet docket either side of the FOMC rate decision. CitiBanamex will also release the latest Mexico survey of economists.
  • US: The FOMC will likely hold rates at its September meeting, while maintaining its tightening bias. Despite recent progress on inflation, which will see core PCE forecasts revised down for the first time since 2020, we expect most of the FOMC’s median expectations to be largely unchanged in the latest set of quarterly projections.
  • CHINA: MNI (Beijing) - China’s commercial banks’ squeezed interest margins helped hold the loan prime rate (LPR) steady in September, however, the PBOC will likely cut its policy rates to guide down the reference lending rate by 5-10bp later this year to bolster the slowing economy, economists and analysts told MNI.
  • CHINA: The People’s Bank of China will take prompt actions to curb any overshoot of the yuan exchange rate, while enhancing support to the economy via expanding credit and reducing funding cost, a senior official of the Bank told reporters on Wednesday during a briefing.
  • UK: Headline inflation slowed again in the UK in August dipping to 6.7% y/y, the lowest level since February 2022, data released Wednesday showed. This has prompted some sell-side analysts to revise their calls to a rate hold at Thursday’s BOE meeting.

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