FXStreet – Lu Lei, PBOC’s Research Bureau Head crossed the wires earlier on the day, noting that deflation pressure as well as yuan exchange rate volatility is expected to rise this year.
Key Quotes:
Monetary easing to add capital outflow pressure
Room for monetary policy is relatively small
Rate/RRR cut to fuel financial risk accumulation
Easing monetary condition to boost leverage ratio
Sees increasing risks with corporate debt
Deflation pressure to rise in 2016
Sees 2016 gdp at around 6.5%, forecasts CPI around 1.3%
2016 M2/Total social financing growth between 11-13%
Yuan exchange rate volatility to rise in 2016
(Market News Provided by FXstreet)