Forbes (March 15)
“As the Bank of Japan mulls its biggest policy pivot in roughly 25 years, no major economy may benefit more than China,” helping to counter the headwinds zooming China’s way.” Hoping to supplant the dollar as the global currency, China is hesitant to devalue its own currency. Yet, “for China, falling prices will just further undermine business and household confidence. It’s here where a rising yen could counter the headwinds zooming China’s way. And make China the real winner as the BOJ calls it quits on QE next week.”
Tags: BOJ, Business, China, Confidence, Devalue, Dollar, Falling, Global currency, Headwinds, Household, Major economy, Policy pivot, Prices, Rising yen, Undermine
Bloomberg (March 8)
“China’s second interest-rate cut in three months has raised fears that the government is trying to devalue the yuan to give its exports an unfair boost — an understandable suspicion.” In this case, however, “lower interest rates and a moderately weaker yuan make sense not just for China but for the rest of the world as well.” These factors should help Chinese leaders achieve their “soft landing” growth target of 7%. “The rest of the world no less than China needs this soft landing to be smoothly accomplished.”
Tags: China, Devalue, Exports, Government, Growth, Interest rate, Soft landing, Yuan
