Earlier China-related posts today:
- "PBOC has limited room to ease due to concerns over inflation, capital flight"
- Chinese financial media reports potential for CNY 1.5 tn debt issuance to fund investment
Scotia expects further fiscal stimulus will be rolled out in H2 2022 to support the economy. On monetary policy, does not expect the People's Bank of China to "flood the economy with excessive liquidity" .
On the yuan:
- a weaker yuan that makes imports into China more expensive is not in the monetary authority’s interest at this stage
- USD/CNH is expected to trade between 6.70 and 6.80 with downside potential in the weeks ahead
CNH update:
