Most likely* China policy options ahead - more fiscal spending, PBOC liquidity injections

Author: Eamonn Sheridan | Category: Central Banks

The little star in the headline  .... Most likely unless there is some major shock to the system (eg. trade war with US gets much worse).

I posted last week on the meeting of top China officials late this month and into early August:
Internal policy discussions ahead of the big meeting are aimed at providing options avoiding any sharper economic slowdown. Officials are wary of too aggressive easing, which could fuel debt and financial stability risks.

Still, efforts are likely to focus on 
  • more fiscal spending
  • PBOC  infusion of liquidity
if needed. 

For the time being, with ongoing assessment of liquidity in the financial system and the impact of earlier stimulus measures.

China trade war with US

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