The PBOC has clarified that its plans to start trading government bonds are aimed at managing interest rate risk, not conducting QE. This reinforces our sense that large-scale monetary easing remains unlikely. On the fiscal front, a renewed decline in land sales in March, coupled with decreasing LGFV bond issuance, points to waning off-budget fiscal activity. This poses a threat to the current cyclical upturn in growth.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services