Filtered by Topic: Monetary Policy Use setting Monetary Policy
The main significance of today’s announcement by the People’s Bank (PBOC) that it is cutting standing lending facility (SLF) interest rates is that it is experimenting with a new monetary policy framework. This shift in itself does not constitute monetary …
19th November 2015
Although there has been a surge of speculation in the wake of China’s exchange rate move that Hong Kong could abandon its US dollar peg, we expect the peg to remain in place well into the next decade. … Little chance of a Hong Kong …
27th August 2015
Panic about China is overblown Investors are overreacting about economic risks in China. The collapse of the equity bubble tells us next to nothing about the state of China’s economy. In fact, recent data have been more positive than the headlines might …
24th August 2015
A second downward adjustment to the renminbi reference rate today suggests that policymakers are now more willing to give in to market forces than we had previously thought. That said, we still think the changes to the reference rate primarily reflect …
12th August 2015
By setting a lower mid-point for the renminbi’s trading band the People’s Bank has sparked speculation that it is embarking on a competitive devaluation of the currency in order to shore up exports. In reality, the move was largely the result of a …
11th August 2015
Unconfirmed reports that the People’s Bank is considering buying local government bonds have sparked talk of impending QE in China. That’s wide of the mark: unlike with asset purchase programs elsewhere, the goal in China may actually be to avoid …
28th April 2015
The Swiss National Bank’s (SNB) decision last week to abandon its exchange rate ceiling has put Hong Kong’s peg to the US dollar under fresh scrutiny. While the peg creates a number of problems, it remains the best option for Hong Kong. We expect it to …
20th January 2015
China is seeking to rein in bank lending and hold to a conservative fiscal stance while maintaining rapid economic growth. It cannot do all three. … China’s impossible …
27th July 2010
