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