Find below ANZ’s excellent monthly China chart pack. The only observation I’d make is that the bank continues to apply a Western paradigm to the PBOC response to economic weakness, forecasting large cuts in reserve ratio requirements and interest rates. The evidence to date is that a more modest easing is coming, if China wishes to rebalance towards internal demand. If Michael Pettis is right, owing to the very high savings rate, higher interest rates stimulate consumption.
ANZ Greater China Economic Insight Incl Regional Chartbook – 21 Aug 2012
