Slowdown Adds to PBOC Headaches

China’s activity growth slowed sharply in November, with the R-CAT, our proprietary indicator of industrial output, showing only 1.0% y/y growth, the weakest level since summer 2015. The PBOC’s tiny 5 bps rate adjustment last week highlights the bank’s potential limits in following the Fed’s anticipated hikes in 2018, as well as its transition to a regulatory approach to tightening.

Posted December 20, 2017
Facebook Twitter Pinterest