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.
The Reserve Bank of Australia warned the Chinese economy's near-term path after the lifting of Covid controls was "highly uncertain", according to the Statement on Monetary Policy released Friday.
The RBA noted China could enjoy a rebound in consumption, highlighting policy support to encourage spending and stabilise the property sector.
"Economies have typically seen strong rebounds in household consumption after ceasing restrictions. This could also be true in China if households choose to spend more than expected of the considerable household savings they have accumulated over recent years. In addition, the recovery could be strengthened by a more supportive economic policy stance," the RBA said.
"However, if health outcomes are worse than expected, consumers may be more hesitant to spend. It is also possible that factors such as prolonged weakness in the property sector could weigh on the economy by more or for longer than currently envisaged."
The RBA noted the reopening of China's economy had triggered a "sharp" rebound in iron ore prices and had "improved" the outlook for coal demand.
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.