RRR Cut Odds Soar After Brexit and Expected Global CB Intervention

Netease: 对冲人民币贬值压力?央行降准概率陡增!
Hai Tong Securities macroeconomic analyst Jiang Chaodeng people believe that the RMB exchange rate short-term pressure, but the United States expected to raise interest rates in the second half have collapsed, the second half may improve the RMB exchange rate environment. In the large capital outflows, the economy continues to deteriorate, the central bank does not rule out the RRR to curb excess liquidity and stimulate the economy, expect the central bank's monetary policy may still prudence, while maintaining exchange rate stability, through MLF, SLF, open market operations hedging tool, but if the currency devaluation led to liquidity pressure, quasi upside down.
Shenwan Hong source research report published Interpretation of British off-European event that, in order to hedge capital outflows and downward pressure on the economy, the euro zone and Britain are expected to adopt a more accommodative monetary policy. Increased risk of global financial markets, the Fed's monetary policy will be more cautious. Prior to China's monetary policy more conventional means of liquidity management, reserves the right to drop quasi-rate cut. British off the impact of the EU will make the probability of drop quasi greatly increased. If desired, does not rule out the possibility of a rate cut.

CICC analyst Yu Xiangrong Liu and Liu Liang said that after the British off in Europe, China and the need to increase the space for monetary easing, many years down the probability of quasi-rate cut even increase; the Fed does not raise interest rates this year, the probability increases.

China Daily: PBOC pumps 100 billion yuan into market
China's central bank on Monday pumped 100 billion yuan ($15.12 billion) into the market to provide liquidity.

The People's Bank of China (PBOC) put 270 billion yuan into seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future.

The reverse repo was priced to yield 2.25 percent, according to a PBOC statement.

Reverse repos worth 170 billion yuan mature on Monday, so the central bank has effectively injected 100 billion yuan into the market

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