PBOC has limited room to ease amid inflation, capital flight concerns – Reuters

The People’s Bank of China (PBOC) has limited room to ease due to concerns over inflation and capital flight, Reuters reported late Wednesday, citing PBOC insiders.

Additional takeaways

Economic recovery looking increasingly shaky.

PBOC seen easing further in response.

PBOC likely to lower the key lending rate next week to spur demand.

Imminent RRR cut seen unlikely due to ample cash in the economy.

Related reads

• USTR: To begin formal negotiations on a trade initiative with Taiwan in early autumn
• AUD/USD slides towards 0.6900 on surprise fall in Australia’s Employment Change