PBOC is working hard to stand pat – BBG Survey

According to the latest Bloomberg survey this month, the Chinese central bank (PBOC) is seen trying hard to keep its monetary policy steady amidst major central bankers shifting gear towards a more hawkish narrative.

Key Findings:

“60% of economists polled say that the PBOC’s broad policy stance will remain "roughly the same" through the end of 2017. It’s how they maintain the hold, though, that matters.”

“Through the use of a wide range of monetary instruments, the PBOC is attempting to meet two seemingly conflicting goals at once -- weed out excessive borrowing in the financial system while ensuring credit to an economy that's on a long-term slowdown. The need to maintain the balance is especially acute amid the political sensitivity around the approaching leadership transition of the 19th Party Congress in the fall.”