FED'S BARKIN: LOOKING FOR MORE EVIDENCE OF INFLATION'S DECLINE

BARKIN: FED SHOULD ACT DELIBERATELY, KEEP CLOSE EYE ON ECONOMY

MNI BRIEF: China Equip't Renewal Policy Includes Foreign Firms

MNI China Daily Summary: Wednesday, July 17

MNI China Press Digest July 17:  Investment, LPR, H2 Priority

MNI: PBOC Net Injects CNY268 Bln Via OMO Wed; Rates Unchanged

US Treasury Auction Calendar

Broad-based Softening In June Underlying Inflation Metrics

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

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

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

Summary – June 13

LATAM
EM BulletHomepagemarkets-real-timeBulletEmerging Market NewsBank of Japan (BOJ) Market NewsFOMC Calendar Market News
  • Focus on Thursday turns to the BCRP interest rate decision, with the central bank expected to cut by another 25bp to 5.5%, following the return of CPI inflation to target. Brazil April retail sales figures are also due, while the BCCh will publish its latest traders survey. In Argentina, analysts expect monthly CPI inflation to slow further in May. In the US, PPI takes the focus. The central bank speaker slate is quieter, although the Fed's Williams is set to interview the US Treasury Secretary Yellen at 1700BST/1200ET.
  • Global News:
    • US (MNI) – The overall outcome of the June FOMC meeting was hawkish versus expectations, but couldn’t fully reverse the dovish impact of a very soft May CPI report released hours earlier. Markets reacted hawkishly to the new projection for the 2024 median Fed funds rate, which showed just one cut anticipated by year-end, versus three in March’s projection (and 2 widely expected). But the reaction was relatively muted, due in part to the fact that the 2025-26 path was relatively steady, implying 100bp of cuts in each of 2025 and 2026.
    • EU – More euro-area interest-rate reductions are likely if the ECB’s expectations for a further slowdown in inflation materialise, according to Governing Council member Bostjan Vasle. “If the baseline scenario is realised and the data are favourable, then we can probably expect further rate cuts already this year, and then also next year,” the Slovenian central bank chief told Finance newspaper.
    • JAPAN (MNI) - The BoJ is expected to keep the target for the overnight uncollateralized call rate unchanged at 0-0.1%, on June 14. Nevertheless, the trend towards normalisation continues, while the BoJ's sensitivity to foreign exchange rates has also shifted in recent months. We expect a generally hawkish tone at the meeting, indicating the possibility of additional policy tightening ahead, possibly as soon as July. The focus for the June meeting will likely be on balance sheet policy and the future pace of JGB purchases.
324 words

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.
  • Focus on Thursday turns to the BCRP interest rate decision, with the central bank expected to cut by another 25bp to 5.5%, following the return of CPI inflation to target. Brazil April retail sales figures are also due, while the BCCh will publish its latest traders survey. In Argentina, analysts expect monthly CPI inflation to slow further in May. In the US, PPI takes the focus. The central bank speaker slate is quieter, although the Fed's Williams is set to interview the US Treasury Secretary Yellen at 1700BST/1200ET.
  • Global News:
    • US (MNI) – The overall outcome of the June FOMC meeting was hawkish versus expectations, but couldn’t fully reverse the dovish impact of a very soft May CPI report released hours earlier. Markets reacted hawkishly to the new projection for the 2024 median Fed funds rate, which showed just one cut anticipated by year-end, versus three in March’s projection (and 2 widely expected). But the reaction was relatively muted, due in part to the fact that the 2025-26 path was relatively steady, implying 100bp of cuts in each of 2025 and 2026.
    • EU – More euro-area interest-rate reductions are likely if the ECB’s expectations for a further slowdown in inflation materialise, according to Governing Council member Bostjan Vasle. “If the baseline scenario is realised and the data are favourable, then we can probably expect further rate cuts already this year, and then also next year,” the Slovenian central bank chief told Finance newspaper.
    • JAPAN (MNI) - The BoJ is expected to keep the target for the overnight uncollateralized call rate unchanged at 0-0.1%, on June 14. Nevertheless, the trend towards normalisation continues, while the BoJ's sensitivity to foreign exchange rates has also shifted in recent months. We expect a generally hawkish tone at the meeting, indicating the possibility of additional policy tightening ahead, possibly as soon as July. The focus for the June meeting will likely be on balance sheet policy and the future pace of JGB purchases.