Flash Notes-China: Reassessing RMB Outlook Post-MAS

Global central banks are jumping on the easing bandwagon, with MAS the latest one which could set a precedent forother central banks to move ahead

    China’s inflation situation is also facing similar downward pressure, and the correlation with PPI suggests there is stillmuch downside room

    We think that PBoC still has plenty of room to adjust its policy and maintain our view of further interest rate and RRRcuts this year. In addition, we are also cutting our end-2015 RMB forecast to 6.29/USD from 6.18 previously.