BOJ: MNI BoJ Preview - July 2025: Focus On Presser After Trade Deal

The People’s Bank of China’s Monetary Policy Committee will aim to increase the relevancy and effectiveness of its policies, the Economic Information Daily reported, citing a quarterly MPC meeting. The central bank was still expected to promote RRR and interest rate cuts in H2, following easing in May, given increased export pressure and low price levels, despite officials not mentioning the phrase “a timely reduction of reserve requirement ratio and interest rates”, said Wang Qing, analyst at Golden Credit Rating.

China’s boom in ‘ancient city’ construction has led to homogenisation, a lack of character and over-commercialisation, leading to few tourists at many attractions, 21st Century Business Herald reported, citing industry insiders. Kong Xuhong, vice dean at the School of Tourism of Fujian Business University, previously stated ancient town investment had become a magic weapon for local governments to boost their performance and for companies to obtain subsidies and financing investment. However, insufficient exploration of historical, cultural and folk customs led designers and operators to blindly pursue the ‘internet influencer effect’, Kong added. Lin Peng, director of the China Ancient City and Culture Research Institute, also publicly noted China had developed more than 2,800 ancient cities and towns, with most people only able to remember around eight.

Headlines have crossed that Canada will rescind its digital services tax in order advance trade talks with the US. 

• Bloomberg notes: "- Canadian Minister of Finance and National Revenue François-Philippe Champagne says that Canada would rescind the Digital Services Tax in anticipation of a mutually beneficial comprehensive trade arrangement with US, according to a statement."
• Other headlines indicate that trade talks will resume, with a dealing looking to be reached by July 21 between the two countries.
• This follows Trump's announcement towards the end of last week that trade talks between the two countries would be ended due to the digital services tax.
• USD/CAD is down modestly on these headlines, last near 1.3670. Session highs today were at 1.3700.