China bucks the tightening trend

Published: Jan. 17, 2022, 7:29 p.m.

b'Tuesday 18th January 2022Bond yields continue to rise as expectations heighten for faster central bank tightening. As NAB\\u2019s Tapas Strickland discusses on today\\u2019s Morning Call, the exception is the People\\u2019s Bank of China, which lowered rates yesterday on concerns about the spread of Omicron. President Xi has asked other central banks to sit tight, but that seems unlikely. Even the RBA is likely to bring forward its end to QE to next month. Whilst China faces more lockdowns, the rest of the world seems to be opening up The UK seems likely to end its Plan-B restrictions as soon as next week. The Empire Fed Manufacturing survey will be worth looking out for today, particularly after a sharp fall in the ISM Manufacturing Prices Paid Index. Could the supply chain disruption be easing \\u2013 and maybe inflation was transitory after all? Perhaps.


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