Publications and economic news

The Central Reserve Bank of Peru kept the interest rate at 4.25% but adopted a more restrictive tone. It removed the conditionality for future adjustments, increasing the probability of a rate hike this year. Annual inflation rose to 4.4% in August, and 12-month expectations stand at 3.1%.

In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.

The ECB raised rates again while keeping all options open for what comes next. The meeting confirms that the return of inflation to target will take longer than previously expected and puts December increasingly in focus.

The CBRT again kept the policy rate and the interest corridor unchanged at 37% and 35.5-40%, respectively, in line with the market consensus. Following the CBRT’s earlier and faster-than-expected easing as of August 23rd, today’s decision appears to signal caution amid the renewed rise in energy prices.

The report analyzes the undervaluation issue of the RMB. Based on the MB and BEER models, it concludes that while there indeed exists periods of undervaluation, its degree of undervaluation is significantly lower than often claimed.

Annual inflation resumed its upward trend in August and stood at 6.24%, 21 bps above July and 114 bps above the level observed at the end of last year.

Global climate governance has moved from framework-building to delivery. Despite progress, implementation and ambition remain off track for Paris. COP31 should therefore be judged by whether commitments translate into measurable, financed, accountable and climate-consistent action.