Plenum readout, stagflation fears, RCEP Summit

The conclusion of the Communist Party Plenum offered few clues on the direction of economic policy. Meanwhile, rising inflation is leading to suggestions that the PBOC won’t be able to loosen as much as needed to support growth. This is overdone. Unlike in episodes of stagflation elsewhere, the recent collapse in pork supply is not leading to broader price rises. Finally, China’s efforts to promote itself as a champion of globalisation may receive a boost over coming days if neighbouring countries move closer to an agreement on the RCEP, China’s preferred alternative to the TPP.