Capital Economics analyst Julian Evans-Pritchard

  • Says the PBOC's "appetite for further easing is limited given concerns about credit risks"
  • The likelihood rises (in 2017), when we expect growth to slow again. But we think that the PBOC will reach for other tools first, such as expanding its targeted lending facilities and lowering interbank rates.
  • We are forecasting that the PBOC will wait until 2018 before cutting benchmark rates and the RRR (reserve requirement ratio) by 50 and 100 basis points, respectively

Capital Economics is gated, this is via Reuters (not fresh news, was out overnight)

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Meanwhile, AUD making a fresh session high again:

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