Swiss Economicblogs.org
The People’s Bank of China is unlikely to welcome further currency weakness.Having dropped more than 5% year to date, our scenario of weaker growth in China in 2019 (we expect GDP growth to decline to 6.1% from 6.6% in 2018) is likely to further weigh on the renminbi through the interest rate differential. The Chinese current account is unlikely to provide much relief, as it has moved into deficit in 2018. However, given that the renminbi is around 10% off its recent peak, a further sharp...
Read More »Renminbi nears a psychological threshold
