Skip to main content

Policy normalisation already well advanced

Monetary conditions are not particularly loose in China and markets may be overestimating the degree of tightening to come. We expect several increases to the required reserve ratio over the next 12 months, but only three benchmark interest rate hikes. In the near term, interbank rates are likely to fall.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access