28 Jun 2013
Flash: The “lesson” is over in China - BBH
FXstreet.com (London) - Brown Brothers Harriman analysts note that the PBOC switched to a more conciliatory stance on money market tightness and started to provide funds selectively.
They see that the PBOC reassured markets that it has the resources and will keep money market rates at "reasonable" levels. They write, “On net, this seems to spell out a more challenging short-term outlook for China, since the government seems prepared to face market pressure and accept slower growth to start sorting out the problems in the banking system. But of course, this is positive in the long term.”
They see that the PBOC reassured markets that it has the resources and will keep money market rates at "reasonable" levels. They write, “On net, this seems to spell out a more challenging short-term outlook for China, since the government seems prepared to face market pressure and accept slower growth to start sorting out the problems in the banking system. But of course, this is positive in the long term.”