Moody's response to the data out of China earlier:
Data is here:
- China Q4 2018 GDP: 6.4% y/y (expected 6.4%)
- China December activity data - industrial production, retail sales and more
Moody's:
- pretty clear the government will try to use as much selective stimulus to keep the economy on a good track
- They could reduce the RRR again
- plus some tax cuts
- The difficulty will be trying to ramp up consumer spending and that's because of the high debt load consumers are in right now.
- corporate debt load is high as well
- Local governments are strapped with debt.
- So it's not the question of if government being able to provide for the stimulus but really the effectiveness of it.
Also on the China data:
