How China's Policy Playbook Changed for More Monetary Easing After Trump Tariffs: StanChart
Standard Chartered Bank expects the People's Bank of China to move towards a measured depreciation of the yuan to allow for more monetary policy flexibility, as the worse-than-expected US tariffs have changed China's policy playbook to focus back on domestic stimulus. Becky Liu, Head of China Macro Strategy at Standard Chartered Bank said in an interview with Bloomberg TV that the yuan depreciation is not intended to balance out US tariffs impacts. She says the 125% tariffs on Chinese goods would be too high to be offset by any form of currency depreciation.
