China could tighten in mid-2018
|China’s economy has showed a slight deceleration, but nothing dramatic. Still, to keep capital from flowing elsewhere, the People’s Bank of China might tighten interest rates in mid-2018.
Chinese October retail sales increased 10.0% annually, below expectations of 10.5%. Fixed investment rose 7.3%, and industrial production increased 6.2% - both behind expectations. So growth is slowing, not surprisingly, given the central bank’s war on shadow lending and pollution. China’s 10-year government bond yield has risen to the highest level in three years, despite injections of CNY 150 billion via reserve repos.
Stay on top of the markets with Swissquote’s News & Analysis
This has allowed CNY to gain, with USD/CNY falling to 6.64. Stronger than expected trade growth continues to support the economy which we don’t see slowing significantly in 2018.
see the PBoC flowing the fed lead with tighter rates in mid-2018.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.