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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
- PBoC Governor Yi mentioned in its statement that inflation in China is now generally mild following the CPI/PPI print this week.
- As a reminder, PPI Inflation decelerated more than expected (again) in January and came in at 9.1% YoY (vs. 9.5% exp.), down from 10.3% the previous month and down from a 26-year high of 13.5% reached in October 2021.
- CPI inflation, which has been less of a driver of China LT bond yields (relative to PPI) in the past cycle, also surprised ‘negatively’, decelerating to 0.9% in January (vs. 1% exp.).
- The chart below shows that the sharp contraction in Chinese 'liquidity' (TSF 12M Sum) in 2021 has been pricing in a significant deceleration in inflation (PPI) in the coming 9 to 12 months.
- Yi reiterated that the PBOC will keep prudent monetary policy flexible and appropriate.
- Governor Yi said earlier this week that China will return to a potential growth rate of 5%/5.7% in 2022 thanks to the supportive monetary policy stance.
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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