Commerzbank: Resilient China PMIs Allow PBoC to Stay Patient
Commerzbank analyst Dr. Henry Hao notes that China's resilient manufacturing and non-manufacturing PMIs reduce pressure on the PBoC for immediate broad-based easing, despite weak domestic demand.
CNHUSD
Commerzbank’s Dr. Henry Hao commented on China's latest PMI data, stating that the resilient readings in both manufacturing and non-manufacturing sectors suggest the economy is not weak enough to warrant immediate broad-based easing by the People’s Bank of China (PBoC).
While domestic demand indicators remain soft, the PMIs provide room for the central bank to maintain a patient stance. The analysis implies the PBoC is unlikely to rush into aggressive stimulus measures in the near term.
Source: FXStreet Forex News