PERU: BCRP On Hold Again As Expected, Door Still Open To Further Cut
Dec-12 09:53
- The BCRP left its reference rate unchanged at 4.25% for a third consecutive meeting last night, in line with the majority of analyst expectations. The accompanying policy statement was very similar, with the Board maintaining a data dependent stance and giving no guidance on future decisions. With the real policy rate close to the neutral level, several analysts expect the BCRP to remain on hold ahead, although the door remains open to another cut, given the benign inflation backdrop.
- Despite recent softer-than-expected CPI data, the Board continues to expect headline inflation to approach the midpoint of the target range in the coming months, although it now sees that process happening “gradually”. It also still sees core inflation around 2% in the projected horizon. Meanwhile, inflation expectations remain stable within the target range.
- On activity, the committee noted that leading indicators “show sound performance”. Additionally, almost all indicators remained in “optimistic territory” around the potential rate. On the external front, it no longer references the downside risks to global growth, noting instead that “activity points to moderate growth amid easing trade tensions”.
- Overall, the Board reiterates that future rate adjustments will depend on new information about inflation, particularly core inflation, inflation expectations and economic activity. The next MPC meeting is scheduled for January 08.
- Link to BCRP policy statement here.
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GILT SYNDICATION: Books for 1.75% Sep-38 linker exceed the June launch
Nov-12 09:50
- Note that books were GBP61.3bln for the launch syndication of this linker in June - so we have already exceeded that with books in excess of GBP66bln with 15 mins to go.
- That resulted in a GBP5.5bln transaction size which was the top end of our expected range ahead of books opening today.
OPTIONS: Larger FX Option Pipeline
Nov-12 09:48
- EUR/USD: Nov13 $1.1575(E1.1bln), $1.1590(E1.5bln); Nov14 $1.1625(E1.4bln)
- USD/JPY: Nov13 Y147.00($1.6bln), Y152.96-00($1.1bln), Y155.00($1.1bln)
- AUD/USD: Nov14 $0.6750(A$2.2bln)
- USD/CAD: Nov14 C$1.4025-35($1.2bln)
GILT SYNDICATION: 1.75% Sep-38 linker: Spread set
Nov-12 09:46
- Spread set at 1.125% Nov-37 linker (GB00B1L6W962) +10.50bps (guidance was +10.50 / +10.75bps)
- So this is the tight end of the guidance range
- Size: GBP Benchmark (MNI expects GBP GBP4.5-5.5bln)
- Books in excess of GBP66bln (inc JLM interest of GBP3.9bln)
- ISIN: GB00BMY62Z61
- Expected Settlement Date: 13-November-2025 (T+1)
- JLMs: GSIB (B&D/DM) / JPM / NOMURA / SANTANDER
- Timing: Booksto close at 10:00GMT, today’s business
Source: Market source and MNI colour
