2015-06-25

Chinese Growth Target Is Kinda Sorta 7%, But Not Really; PBOC Waits

ECNS: Growth does not have to reach 7%
China's GDP growth does not have to reach 7 percent this year, financial news portal wallstreetcn.com reported Wednesday citing Finance Minister Lou Jiwei, who also said that the current growth is "within a reasonable range."
iFeng: 楼继伟:中国经济增速目标并非必须超7%

The central bank is also in wait and see mode, with no cuts coming this month.

June 23, continuing silence on the open market operations. So far, the central bank has suspended more than a month reverse repo operations on the open market. In addition to reverse repurchase pause, it is learned, shortly before the central bank to some institutions were directed repurchase. At the central bank continue to be suspended while the reverse repo, the recent trends and the future of monetary policy operations, the market there is disagreement on the expectations.

"The current market is part of the agency is expected shortly RRR rate cut is also possible; There agency believes that in view of the economy is stabilizing and gradually force the early policy years, monetary policy will likely remain stable, will be targeted mainly addition delivery Some analysts expect the current monetary policy is in a wait period, whether to sell, how to sell, but also depends on the real economy, depending on the situation. "Analysts from Hua Securities, said," I personally prefer the third point of view. "

...Zhao Qingming, an international financial expert said: "probably no big moves in the near future, no interest rate or RRR cuts this month... May the main macro data, the economy showed signs of stabilization, the central bank may continue to observe the early effects of policy measures. on market expectations of RRR, the current ample liquidity in the banking system, the lack of drop quasi urgency. Of course, there are still three quarters to cut interest rates, lowering the possibility of quasi-total point of view, we expect interest rates have come to an end, at least the second half of a rate cut might exist."

...Wen Bin said that after two "comprehensive orientation" RRR, easing liquidity of the financial system, increasing the excess reserves of commercial banks; May trade surplus widened to nearly 60 billion US dollars , foreign exchange increased, which will squeeze further RRR space. However, in the long run, with the Federal Reserve at the end of the third quarter or early fourth quarter point rate hike and China ushered in a further increase of capital account liberalization efforts, pressure net outflow of domestic funds may be larger, which means that RRR operations still further release liquidity.

iFeng: 央行主管报纸刊文:本月已无降息和降准可能

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