EM CEEMEA CREDIT: CEEMEA EM Credit Market Update close

• BOC'S ROGERS SAYS BALANCE SHEET PLANS UNFOLDING AS EXPECTED
• BOC DOESN'T WANT A TARIFF PROBLEM TO BECOME INFLATION PROBLEM

"*BESSENT: CAN KEEP NEGOTIATING ON TRADE PAST AUG. 1 IF NO DEALS" Bloomberg

Recall Trump on Truth earlier today: "THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!""

Asked about whether the BoC thinks there is a need to cut rates later this year in its "current tariff" MPR scenario, Macklem doesn't give much away, repeating the language in the rate decision statement. 

• "We're going to take our decisions one decision at a time, and our future decisions are going to depend what happens in the future."
• "I think the first message is, the situation hasn't changed that much since our last decision. We continue to proceed carefully. Given the unusual amount of uncertainty, we're continuing to put more weight on the risks, and we're ready to respond to new information."
• "The second thing I would say is we have been very clear about what we're watching most closely, what we're particularly focused on. And those are the four things I outlined. We're looking at how much are US tariffs impacting our exports? How much is the weakness in exports spilling over into business investment, into employment and into household spending. How quickly, you know, how big are those direct costs? How quickly are those getting passed through to consumer prices, and what's happening with inflation expectations?"
• "And then the other thing we've said is that, you know, looking ahead, if the weakness in the economy creates further downward pressure on inflation, and the those upward pressures from from tariffs and disrupt trade disruption are contained, there could be a need for a further cut in our interest rate."