FFR increase in June +75 Bps (Vs. Cons. +50 Bps), the Fed’s aggressive action dampens May high inflation at consumer CPI level (1.0% MoM; 8.6% YoY); as well as producers PPI (0.8% MoM; 10.8% YoY). The Fed’s commitment to bring inflation back to the 2% target was responded positively by Wall Street responded, after the previous May FFR increase of only +50 bps failed to dampen inflation. Wall Street’s strengthening ignored US monthly retail sales data in May which fell 0.3% (Vs. Apr. +0.7%), as automotive purchases declined and rising fuel prices restrained public consumption.
Survey: June BI 7DRRR Maintained at 3.50%. Based on Bloomberg survey data, BI will maintain BI 7DRRR at 3.50% at the RDG on June 22-23 next week. BI stated that the current inflationary fluctuations did not have to be responded to by an increase in the BI 7DRRR, and BI had also normalized policies in terms of absorption of market liquidity in the banking system by increasing the Statutory Reserves. The success of the JCI closing at the psychological level of 7,000 made NHKSI Research project that the JCI will move upward today, with a range of 6,950-7,150.
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