Market buzz about the potential for QE in China is continuing to build
- Its unconfirmed, but talk is that China is planning to buy local government bonds
- That's to help ease liquidity concerns
- Some of the recent debt sales were delayed due to a lack of buyers
Comments from Credit Agricole:
- "We believe that the Chinese economy needs stronger stimulus and that central bank purchases of local government debt would be an ideal method of delivering it"
- "There would be nothing unusual in the PBOC expanding its balance sheet through means that are unconventional for other central banks"
- "The magnitude of quantitative easing would likely be smaller than in G3 economies"
And more from the Australian press: Is the People's Bank of China planning QE?
