EM central banks ahead in the week – BBH

The FX research team at BBH noted the central banks’ meetings scheduled in the EM space ahead in the week.

Key Quotes

“Bank of Korea meets Thursday and is expected to keep rates steady at 1.25%.  CPI rose 1.2% y/y in September, higher than expected and the highest since February 2016.  While it remains below the 2.5-3.5% target range, the trajectory should warrant caution ahead.  BOK has been on hold since its surprise 25 bp cut to 1.25% in June.  With price pressures rising, we think the easing cycle is over”.  

“Peru central bank meets Thursday and is expected to keep rates steady at 4.25%.  The central bank has been on hold since it last hiked 25 bp to 4.25% back in February.  CPI ticked higher to 3.1% y/y in September, back above the 1-3% target range after spending one month within it.  We think the tightening cycle is over, but easing is unlikely until 2017”.