Comments from People’s Bank of China's Deputy Head Chen

  • China CPI is not in a continued drop
  • China's January surveyed-based employment rate 5.05%
  • US central banks should improve coordination
  • China-US communication, cooperation increasingly important
  • Strong dollar cycle may trigger crisis in emerging mkt
  • Emerging economies in dilemma on depreciation, inflation
  • Differentiation of policies widen interest rate gap
  • Spillover effects of global monetary easing increasing
  • Global monetary policy differentiation is obvious
  • Global economy in low growth, low inflation status
  • Global coordination on economic policy possibly weakening
  • Central banks' coordination is effective channel

via Bloomberg

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  • Global cooperation based on coordinated economic policies may weaken
  • Spillover effect from global monetary policy divergence is increasing
  • Says if emerging markets cannot solve the issue of duration mismatch during deleveraging process financial turmoil is possible
  • China's inflation is currently at relatively low level, conducive to a stable yuan
  • Yuan stable against a basket of currencies, no basis for persistent depreciation

via Reuters