Better Understanding China
The Fed Is Easing, But Why Is The PBoC Not… Yet? The World’s major Central Banks are easing again. This is most obvious in the case of the US Federal Reserve and the ECB in Europe, but China’s People’s Bank is not yet expanding its balance sheet. This is holding back the Emerging Markets. We expect China to ultimately ease policy, but we continue to believe that the timing is dependent on the pending China-US trade deal and conditioned by their desire to maintain a stable Yuan.