PBOC bigwigs speaking at the BOAO forum

  • Wants to increase global coordination on exchange rate policies

The PBOC speak

Earlier this morning a PBOC adviser, Huang Yiping spoke at the forum;

  • Leeway to cut interest rates or RRR is narrower than in previous 2 years
  • Depreciation pressure on yuan is also limiting room for easing
  • Room to cut rate is smaller as interest rate is close to CPI
  • Downward economic pressure is large
  • China's pressure on capital outflows exist

The corridor may be narrower but that won't stop the PBOC from acting if the feel the need. China worries all seem to come in waves. One minute things are fine and the next we get a patch of fear in the market and they pull the trigger.