Rich World Puts Its Public-Finance Quagmire on Show

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Industrial production numbers are also due from Spain on Monday and Italy on Friday, while French trade data will come out on Tuesday.

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ECB President Christine Lagarde testifies to lawmakers in the European Parliament late on Monday. Aside from questions on current policy at a time when inflation has picked up to a five-month high, the session will focus on the role of the euro.

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Other speakers on the calendar include Vice President Luis de Guindos in Madrid and Chief Economist Philip Lane at a conference hosted by the ECB, both also on Monday. The German, Spanish and French governors are due to make appearances during the week. 

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An account of the deliberations that took place ahead of the ECB’s last decision on Sept. 11 will be published on Thursday.

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BOE speakers will also draw attention. Governor Andrew Bailey will be in Scotland on Monday, while Chief Economist Huw Pill and policymaker Catherine Mann are on the schedule later in the week. 

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In Norway, central bank Governor Ida Wolden Bache speaks in Bergen on Tuesday, and inflation numbers are due on Friday. Denmark releases those data the same day, while Sweden’s consumer prices are out on Wednesday.

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With the Bank of Russia having warned that inflationary pressures are persisting, and with price growth running at twice the 4% target, policymakers will watch September CPI data closely on Friday. 

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A number of monetary decisions will take place around the region:

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Latin America

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With Peru already having reported a bump up in its September annual inflation rate, the coming week will see the region’s four other big targeting economies post consumer prices data for the month.

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Economists expect annual readings to rise further above the 3% inflation targets in Brazil, Colombia, Chile and Mexico. Lima — which reported Oct. 1 — saw a move up to 1.36% from 1.11%.

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Looking to year-end, analysts surveyed by Bloomberg see some disinflation in Brazil and Chile, little movement in Colombia, and acceleration in Mexico and Peru.

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The ramifications of bumpy inflation reports will ripple across the week’s other key economic and monetary policy reports.

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Banxico posts the minutes of its Sept. 25 meeting, where the board — led by Governor Victoria Rodriguez — delivered a 10th straight rate cut, to 7.5%.

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Forward guidance suggested additional cuts. Should policymakers lower borrowing costs by 50 basis points in the fourth quarter to 7%, as many Mexico watchers expect, and also maintain their current pace of quarter-point cuts, Banxico would head into 2026 riding a record easing cycle.

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Peru’s central bank is expected to keep its key rate at 4.25% after September’s 25 basis-point reduction.

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Julio Velarde, 73, who’s outlasted eight presidents and some 20 finance ministers since taking up his post as Peru’s central chief in 2006, last month said “I’d say no” about serving another term. “I’m leaving, I’m leaving,” he insisted. 

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—With assistance from Brian Fowler, Laura Dhillon Kane, Vince Golle, Monique Vanek, Robert Jameson, Mark Evans, Kati Pohjanpalo, Beril Akman and Tony Halpin.

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