The Politburo has just held its triannual gathering to discuss the economy. The post-meeting communique suggests the leadership has turned more positive on current conditions and sees less of a case for additional policy support. The Iran War looks to have strengthened the Party’s conviction in the need to prioritise economic security over efforts to boost domestic consumption. But the import price shock has done little to ease deflation concerns, which have been made worse by the recent slump in hog prices.
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