In the China Securities Journal, a front page commentary on likely moves from the PBOC

It notes China - US interest rate spread has narrowed:

  • poses pressure on the yuan
  • and on capital flows

But:

  • liquidity on the bank market is not very tight (its only slightly tighter)
  • only a small likelihood the PBOC will loosen policy substantially (unles there is a significabt;l weakening in the economy)
  • there will be RRR cuts, but they'll be targeted, not general