China: Reflation momentum delays PBoC cuts – ING
ING’s Lynn Song notes that stronger China Consumer Price Index (CPI) and Producer Price Index (PPI) data in April, alongside resilient exports, reinforce a reflation narrative that reduces urgency for People’s Bank of China (PBoC) easing.
The stronger CPI and PPI data suggest that inflationary pressures may persist, reducing the likelihood of immediate PBoC rate cuts. This may lead to a strengthening of the Chinese yuan against other currencies.
ING’s Lynn Song notes that stronger China Consumer Price Index (CPI) and Producer Price Index (PPI) data in April, alongside resilient exports, reinforce a reflation narrative that reduces urgency for People’s Bank of China (PBoC) easing.
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