The People’s Bank of China has signalled that it remains in tightening mode by responding to the latest high inflation numbers with a reserve ratio hike.

Weakening credit growth and a slowing economy present a policy dilemma when inflation is still high. Our view remains that inflation will taper off in the second half of the year and that growth will...

The gradual slowdown in economic growth should help to ease price pressures over coming months. Recent figures show that food prices continue to fall, while underlying non-food inflation appears to be...

Monetary conditions in China are no longer particularly loose and efforts to “normalise” policy are probably nearer to completion than generally believed. We expect three more reserve ratio increases...