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Summary – March 12

LATAM
  • Brazil IPCA inflation data for February will be published Tuesday, with consensus for a slight moderation in the annual rate of inflation to 4.45% y/y, from 4.51%. The BCB will also publish its weekly Focus survey, while in Chile the central bank will release its latest economist survey. Mexico January IP will cross and Argentina February CPI inflation data will also be released. Elsewhere, US CPI takes focus, with markets expecting headline Y/Y inflation to hold at 3.1%, but for core to moderate by 0.2ppts to 3.7%.
  • Global News:
    • US (MNI) – Consensus puts core CPI inflation at 0.3% M/M in February with little skew either side. OER inflation will be watched particularly closely, with a surprisingly narrow range across analysts. Supercore inflation is seen moderating from an extremely strong increase in January, likely boosted by seasonality concerning start-of-year price hikes, but is still expected to show a strong pace.
    • JAPAN – BoJ officials are edging closer to raising interest rates and will decide whether to move this month at next week’s policy meeting, with the outcome currently too close to call, according to people familiar with the matter. A final decision will be made after officials see the initial tally from spring wage talks due Friday, according to the people.
    • CHINA (MNI Beijing) – China will likely increase stock market regulation, such as tighter IPO rules and strengthened law enforcement, to create a fairer trading environment and restore investor confidence, which could push A-shares up 50%, a policy advisor told MNI in an interview. Lin Yixiang, chairman at TX Investment Consulting and former VP at the Securities Association of China, said trading irregularities – such as insider trading, market manipulation and fraudulent IPOs – had undermined the market.

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