The reaction from Nataxis Asia Pacific Chief Economist Alicia Garcia Herrero to China’s Third Plenum and press conference was overwhelmingly negative. She criticized the lack of change in direction and the absence of any mention of the power of market forces. This disappointment reflects a lack of confidence in China’s ability to shift towards consumption-led
Forecasts
The People’s Bank of China is expected to keep the one-year and five-year Loan Prime Rates steady at 3.45% and 3.95% respectively. However, any unexpected cut could potentially boost demand for the Australian dollar. Lower lending rates in China could lead to an increase in credit demand and consumption, which in turn could benefit the