Comments from People’s Bank of China's Lu (via MNI)
- Monetary easing to add capital outflow pressure
- Room for monetary policy is relatively small
- Rate/RRR cut to fuel financial risk accumulation
- Easing monetary condition to boost leverage ratio
More:
- Sees increasing risks with corporate debt
- Deflation pressure to rise in 2016
- Sees 2016 gdp at around 6.5%, forecasts CPI around 1.3%
- 2016 M2/Total social financing growth between 11-13%
- Yuan exchange rate volatility to rise in 2016
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Lu Lei is head of the PBOC's Research Bureau
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The PBOC have been telling us repeatedly that the OMOs they are conducting are instead of a rate/RRR cut. More of the same from Lu here in these comments.