While the spike in oil prices following the killing of Iranian General Soleimani proved short-lived, oil prices still look set to rise this year on the back of a recovery in demand. But the impact of this on Chinese inflation is likely to be easily offset by the drop in pork prices that is getting underway. Meanwhile, with markets still underestimating the PBOC’s willingness to loosen policy, we think that the recent decline in bond yields has further to run.
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