PBoC to continue easing – BBH

FXStreet (Guatemala) – Analysts at BBH noted that with China data still softening, the PBOC is likely to continue its easing cycle.

Key Quotes:

“The last move was a 25 bp cut in its policy rates in August. CPI rose to 2.0% in August, the highest level this year.

Still, inflation is not the main variable in the PBOC’s reaction function.

As such, we expected easing to be complemented by further cuts in reserve requirements.”

Analysts at BBH noted that with China data still softening, the PBOC is likely to continue its easing cycle.

(Market News Provided by FXstreet)