16 Feb 2015
Monetary accommodation will continue in China – DB
FXStreet (Barcelona) - Strategists at Deutsche Bank, expects Chinese policy makers might loosen fiscal and monetary policies aggressively in H1 2015, with growth expected to surprise on the downside.
Key Quotes
“We reiterate our view that the economic growth will surprise on the downside in H1, as the economy faces a "double whammy" due to property slowdown and a fiscal slide.”
“We believe the fiscal slide has started, as total government fiscal revenue dropped by 0.1% yoy in Q4 2014, and it will worsen quickly in H1 2015. We think the fiscal slide happened as a surprise to the market and the government.”
“We believe the policy makers have started to realize the impact of the fiscal shock on the economy, and they will likely loosen fiscal and monetary policies aggressively in H1.”
Key Quotes
“We reiterate our view that the economic growth will surprise on the downside in H1, as the economy faces a "double whammy" due to property slowdown and a fiscal slide.”
“We believe the fiscal slide has started, as total government fiscal revenue dropped by 0.1% yoy in Q4 2014, and it will worsen quickly in H1 2015. We think the fiscal slide happened as a surprise to the market and the government.”
“We believe the policy makers have started to realize the impact of the fiscal shock on the economy, and they will likely loosen fiscal and monetary policies aggressively in H1.”