A quick take on the China CPI, PPI, deflation datajout a few minutes ago
"The risk of deflation has accentuated," said Liu Li-Gang, the chief Greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong. "This requires the PBOC to engage in more aggressive policy easing."
And
"Declining prices, a heavy debt burden and still high interest rates will likely weigh on corporate balance sheets, undermining their debt servicing capacity and investment demand, and worsening banks' asset quality," UBS Group AG analysts led by Wang Tao wrote in a report ahead of the data. "The negative feedback loop needs to be broken with more serious restructuring, helped by further monetary easing."
Is anyone saying 'no more' PBOC easing? I haven't heard that anywhere. Hardly surprising.
Who's running a book on the date of the next People’s Bank of China easing?
