MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: China CFETS Yuan Index Down 0.05% In Week of Jul 19

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

MNI: PBOC Conducts CNY58.2 Bln Via OMO Mon; 7day Repo Rate Cut

MNI BRIEF: PBOC Cuts 7-Day Repo Rate By 10bp

CBRT Data Watch

NBH Data Watch

Pay concerns push back easing expectations; curve flattens

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

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TD Securities Expect MXN to Depreciate Toward 18.70 Through Q2

BANXICO

On yesterday's Banxico minutes release, TD Securities write:

  • Minutes revealed that high and sticky core inflation was a decisive factor behind the decision.
  • The overall tone and message included in the minutes lead them to reiterate our scenario of Banxico hitting the terminal in its upcoming March meeting with a 25bp hike.
  • As such, TD Securities see space for the TIIE curve to adjust down from its current implicit expectation of incoming 115bps in hikes (already down from 125bps after the publication of the first print of February's Bi-weekly inflation).
  • They expect the MXN to depreciate towards 18.70 through Q2, in part as a reaction to Banxico reaching terminal on March 30.
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