MNI: SNB CUTS KEY POLICY RATE BY 50 BPS TO 0.5%

MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CHINA: Politburo Provides Dovish Monetary Policy Tweak, First Change In Stance

CHINA
EM BulletFixed Income BulletsAPACCommoditiesEquitiesChinaEnergy BulletsBulletMarketsEmerging Market NewsForeign Exchange Bullets

The readout following the Chinese Politburo’s latest meeting on the economy provides the first tweak in the country’s monetary policy stance since ’11, as the body points to a “moderate loosening” in monetary policy. 

  • The Politburo also pointed to more proactive fiscal policy, extending the recent theme there.
  • The body then went on to stress that it will strengthen counter-cyclical policy adjustments and boost consumption forcefully.
  • Focus areas for the support measures are familiar at first glance, although the language is more forceful in some instances.
  • Chinese equities higher following the headlines, while USD/CNH falls around 100 pips to ~7.2750.
  • Broader G10 FX trade sees modest pressure on the USD via the rest-of-the-world growth channel, AUD now the outperformer on the day, while NZD pares some losses against G10 peers.
  • Broader equity index futures edge higher.
132 words

To read the full story

Close

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 readout following the Chinese Politburo’s latest meeting on the economy provides the first tweak in the country’s monetary policy stance since ’11, as the body points to a “moderate loosening” in monetary policy. 

  • The Politburo also pointed to more proactive fiscal policy, extending the recent theme there.
  • The body then went on to stress that it will strengthen counter-cyclical policy adjustments and boost consumption forcefully.
  • Focus areas for the support measures are familiar at first glance, although the language is more forceful in some instances.
  • Chinese equities higher following the headlines, while USD/CNH falls around 100 pips to ~7.2750.
  • Broader G10 FX trade sees modest pressure on the USD via the rest-of-the-world growth channel, AUD now the outperformer on the day, while NZD pares some losses against G10 peers.
  • Broader equity index futures edge higher.