In contrast to elsewhere, bond yields in China continued to drop this week as investors increasingly come around to our view that further cuts to policy rates and reserve requirements are imminent. Arguably more important for the near-term economic outlook, however, is the news that the PBOC has resumed large-scale injections into China's policy banks to boost their lending. This should supplement the tailwind to investment spending from the recent pick-up formal government borrowing.
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