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6 May 2015
PBoC could incur in further easing – BAML
FXStreet (Edinburgh) - According to analysts at BAML, further easing by the PBoC should not be ruled out.
Key Quotes
“There were encouraging signs within the housing market in March despite weakness in real estate investment and new home starts”.
“First, the decline in home sales volume narrowed significantly in March from January-February, showing some early signs of recovery”.
“Second, the home price decline slowed month-over-month in March, pointing to possible stabilization. We expect further recovery in home sales as recent easing measures start to take effect”.
“USD/CNY moved higher post Chinese New Year, partly on corporate hedging”.
“These hedging flows and PBoC daily fixing are key drivers near-term”.
“Recent softness in economic and financing activities, as well as aggressive easing measures, suggest Beijing is emphasizing “stabilizing growth” over “rebalancing structure” and leaning toward monetary easing rather currency devaluation”.
Key Quotes
“There were encouraging signs within the housing market in March despite weakness in real estate investment and new home starts”.
“First, the decline in home sales volume narrowed significantly in March from January-February, showing some early signs of recovery”.
“Second, the home price decline slowed month-over-month in March, pointing to possible stabilization. We expect further recovery in home sales as recent easing measures start to take effect”.
“USD/CNY moved higher post Chinese New Year, partly on corporate hedging”.
“These hedging flows and PBoC daily fixing are key drivers near-term”.
“Recent softness in economic and financing activities, as well as aggressive easing measures, suggest Beijing is emphasizing “stabilizing growth” over “rebalancing structure” and leaning toward monetary easing rather currency devaluation”.