Monetary conditions in China are no longer particularly loose and efforts to “normalise” policy are probably nearer to completion than generally believed. We expect three more reserve ratio increases over the rest of the year. This should be sufficient to offset continuing foreign exchange purchases by the central bank and therefore keep overall monetary conditions stable, rather than represent a net tightening.
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