The Reserve Bank of Australia March meeting minutes showed extended focus on the risks posed from China
The Australian Financial Review covers it here (may be gated): RBA debates at the yin and yang of China's economic future
Main points from the AFR highlight:
- Cautioned that the big drivers of growth in China - demographic change and productivity growth - were set to slow
- Overhang of residential housing inventory
- Excess capacity in the industrial sector
- A positive driver was likely to be further gains in Chinese household incomes
- household debt-to-income ratios & the share of debt denominated in foreign currency were both low
- Low level of foreign currency debt, in particular, differentiated China from other emerging economies that had previously experienced financial crises
