27 Jun 2013
Flash: China Premier Li indicates policy to remain tight - Nomura
FXstreet.com (Barcelona) -The State Council in China held a meeting on Wednesday, with the main topic being the rebuilding
urban slum areas, although Premier Li took the chance to make a few remarks on the general picture of economic conditions and the policy outlook. His message remains unchanged from previous speeches, says Nomura Economist Zhiwei Zhang.
Li did not mention "economic difficulties" or recent market volatility and the liquidity squeeze, although he did say "economic policies should stay stable and consistent, as Zhang explains. The statement suggests that the tightening policy stance will likely persist, Zhang believes. Overall, the statement reinforces Zhang's view "that the monetary policy stance will remain tight." Zhank keeps the 30% probability that GDP may side below 7% in Q3 or Q4.
urban slum areas, although Premier Li took the chance to make a few remarks on the general picture of economic conditions and the policy outlook. His message remains unchanged from previous speeches, says Nomura Economist Zhiwei Zhang.
Li did not mention "economic difficulties" or recent market volatility and the liquidity squeeze, although he did say "economic policies should stay stable and consistent, as Zhang explains. The statement suggests that the tightening policy stance will likely persist, Zhang believes. Overall, the statement reinforces Zhang's view "that the monetary policy stance will remain tight." Zhank keeps the 30% probability that GDP may side below 7% in Q3 or Q4.