PBoC expected to ease further – BBH

FXStreet (Edinburgh) - According to the research team at BBH, the PBoC could extend its easing cycle in the upcoming weeks.

Key Quotes

“Last weekend, PBOC cut rates after earlier reporting soft April CPI and PPI data”.

“This Wednesday, China reported soft April money and loan growth, retail sales and IP”.

“Even after the weekend cut, markets are pricing in further PBOC easing, and we agree”.

“PBOC fixed USD/CNY at another new cycle low this week (and the lowest since February 2014), supporting our view that the authorities aren’t pushing a weak yuan policy”.