According to analysts at the Bank of Singapore, the upcoming Trump-Xi sideline meeting at the G20 summit on November 30th through December 1st could see the People’s Bank of China (PBoC) take further easing steps if trade talks between the two parties falter.
Key highlights
Should a negative outcome be the result of the Trump-Xi trade talks, the PBoC is expected to ease their monetary policy further.
Could also see the USD/CNY rate move beyond 7.0000 in an effort to cushion the upcoming blow of further tariff rate increases due in January.
The PBoC could also be expected to announce immediate fiscal policy measures following the potentially-negative trade meeting in hopes of padding out the Chinese domestic economy, increasing funding access and giving credit facilities/banking systems room to breathe.
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