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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA
- NDRC expects CPI inflation to keep rising until Q1 2023, mainly driven by the surge in pork prices, which rose by 20.2% in July YoY.
- *CHINA ABLE TO MEET 3% CPI RISE TARGET FOR 2022: NDRC OFFICIAL (bbg).
- China officials have remained quiet regarding CPI projections, which have been constantly rising in Asia/SE Asia, forcing central banks to tighten policy in 2022.
- Premier Li Keqiang stated in July that China would be able to keep the 2022 price rise under the 3.5% level, with officials still aiming to achieve a 5%/5.5% growth target for this year despite the elevated uncertainty due to the strict zero-Covid policy.
- We saw that China officials eventually ‘followed’ the market by cutting the policy rate (7D reverse repo) this month by 10bps to stimulate the economic activity.
- Hence, the interest rates cut combined with the surge in risk aversion has been supporting the US Dollar against the Chinese Yuan, with USDCNY rising to a new local high at 6.87 (Aug 2020 highs).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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