Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
Stanchart Estimates Higher Oil Prices to Lift CN Inflation but Still Miss Target, Expects PBOC to Continue Policy Easing
Recommend 3 Positive 3 Negative 2 |
||||
|
||||
|
Although higher oil prices will lift China's inflation, the overall CPI will still remain below the target level of 2%, according to Stanchart's research report. Other local factors, such as ongoing pressure on the real estate industry and fierce competition in the manufacturing sector, continue to exert deflationary pressure. It is expected that the People's Bank of China (PBOC) will continue to ease policies, and still saw the possibility that it will cut OMO rates in 1H26. The broker's base forecast for 1H26 is that the 10-year Chinese government bond yield will be 1.8-1.9%. Due to the cooling of the stock market, short-term bond yields may see more downside, but higher inflation may put upside on long-term bond yields, leading to a steeper yield curve. Stanchart forecasted interest rate swaps (IRS) to moderately decline, reflecting a possible loosening of interbank liquidity conditions, with the yield curve largely stable to slightly steeper. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
