Yale University professor Stephen Roach says ” The PBOC has plenty of ammunition left”. “There’s plenty of room for additional easing, and actually their interest rates are pretty high in inflation adjusted, or real terms”. With economist forecasting June inflation rate to hit a 29 month low. June consumer prices are forecast to rise 2.3%from a year earlier . Also sited is China’s GDP expected to be around 7.8% in the 2Q ,down from 8.1% in 1Q. You’ll see a slower GDP in the second quarter ,but I think it’ll still be a on a soft -landing and not a hard-landing trajectory, so I don’t take this is a sign of panic”.
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