China: Central Bank Closing Outflow Loopholes For Further Monetary Easing
(WorldNews China)

By Iris Pang, Economist, Greater China The People`s Bank of China is actively closing possible capital outflow loopholes, and this firewall building will allow it to lower interest rates and weaken the yuan, which makes it very likely that we`ll see USDCNY passing 7.0 in 2018. Interest rate stabilises from further downward pressure, for now at least The People`s Bank of China would like to lower the interest rate to cushion against potential adverse impacts from the escalating trade war and unwind some harsh damages (e.g. bonds defaults) caused by financial deleveraging reforms in 1H18. However,...