China reserve ratio cut no longer expected this year - BBG Survey

According to the latest Bloomberg Survey, the People’s Bank of China (PBOC) is expected to leave the reserve ratio unchanged at 17% through year-end.

Key Details of the survey:

Survey was conducted during Nov. 21-28

Reserve ratio to remain unchanged at 17% through year-end, instead of the quarter point cut forecasters projected in the October survey.

Still estimated the rate will be cut to 16.5% in the first quarter of next year.

The producer-price index, which snapped four years of deflation in September, will finish the year rising 1.8% from a year earlier, more than double their estimate for a 0.8% increase in last month’s survey.

Raised growth estimate for the current quarter to 6.7%, up from 6.6% in last month’s poll.