NBP: Next Cut May Inaugurate Easing Cycle, MPC Will Discuss RRR Adjustment
Governor Adam Glapinski says that the next interest-rate cut, whether it happens in July or in autumn, will likely mark the formal beginning of an easing cycle. Once this happens, the MPC will probably prefer moving in 25bp steps. The Governor argues that being in a cycle is 'comfortable' and allows for 'fine-tuning' and adjusting its pace along the way.
- The Governor admits that the MPC discussed adjusting the reserve requirement ratio (RRR). It decided to commission analytical materials, study them, and return to the topic at the June meeting. The Governor says he could support action on that front, but it will be a collective decision.
- The Governor's answer to the question about the interest-rate corridor suggests that the MPC did not consider any adjustments here. He says that the panel will decide whether to discuss it in the future.
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TARIFFS: USTR Greer Testimony To Senate Finance Ctte Underway Shortly
United States Trade Representative Jamieson Greer is shortly due to deliver testimony on the Trump administration’s trade agenda to the Senate Finance Committee. LIVESTREAM Greer will deliver a second testimony to the House Ways and Means Committee tomorrow.
- His is the first Congressional appearance by a relevant administration official since Trump’s April 2 tariff announcement. He is likely to get a robust grilling from Democrats and Republicans alike who want clarity on Trump’s strategy.
- According to prepared remarks, Greer plans to argue that Trump’s tariff strategy is “already bearing fruit," highlighting that, "Nearly 50 countries have approached me to discuss the president’s new policy and explore how to achieve reciprocity,” per Politico.
- Politico notes: “[Finance Committee] Ranking member Ron Wyden [D-OR] plans to slam the administration for offering “no clear message” about how Trump chose his tariff targets and how long he plans to keep them up..." Sen. Bernie Sanders’ message: The blanket tariffs are “illegal and another step toward authoritarianism.””
- Note: President Trump issued a memo yesterday promising to veto legislation introduced by Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA) that would rein in the president's authority to impose tariffs unilaterally, should it make it to his desk. Both Grassley and Cantwell sit on the panel.
MNI: CANADA MAR IVEY PURCHASING MANAGERS INDEX 51.3 SA
- CANADA MAR IVEY PURCHASING MANAGERS INDEX 51.3 SA
US-RUSSIA: TASS: US-Russia Talks To Focus On Normalising Work Of Embassies
State-run TASS giving more details on earlier Kremlin comments confirming that talks will resume in Istanbul on 10 April between Russian and US delegations. The talks "will be devoted to normalizing the work of embassies" according to the Russian Foreign Ministry. The talks will be led by Russia's ambassador to the US Alexander Darchiev and US Assistant Secretary of State Sonata Coulter.
- President Vladimir Putin’s foreign policy aide, Kirill Dmitriev, was in Washington last week for talks with senior US officials and indicated afterwards that another round of talks could take place in the near future.
- Russian Foreign Minister Sergey Larvrov said earlier: "Our experts have pointed out that the current security architecture cannot be discussed in isolation from the nuclear capabilities of other nations, these issues must be approached [jointly]. That’s precisely why both Moscow and Washington are investing considerable energy in repairing the damage inflicted on our relationship in recent years, particularly during the previous US administration."
- Recent reports have suggested increasing frustration within the White House at Russia's perceived foot-dragging on implementing an energy ceasefire and Black Sea truce.
