China Inflation Suggests a Harder Landing: Komileva

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May 9 (Bloomberg) –- G+ Economics Chief Economist Lena Komileva discusses consumer inflation in China and what we can expect from the Bank of England’s inflation report due out next week. She speaks to Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Consumer inflation in china moderating.

Factoring in prices, does it give the authorities are in to implement -- more room to implement measures to boost growth?

Probably going to be a more balanced approach to the cost of the chinese economic rebalancing.

A framework of inflation across the chinese economy, housing, retail, wholesale.

That is one of the prices to pay with a bumpier gdp.

It characterized the breakaway expansion of recent years.

The important thing is that it feels concerns that the slowdown is less rather than more managed and the fears of tail risks of a bumpier harder landing have increased.

It would appear they are quite agnostic and their approach to this because some inflation and growth volatility will be the price to pay.

Let's spin it forward to next week.

We had the rate meeting yesterday and nothing happened.

Masked -- next week is exciting, isn't it?

A big debate about the slack in the economy.

There is the changing of personnel.

Absolutely.

Extremely exciting times at the moment because the u.k. economy is expanding at a pace of 3.5%. with the u.k. unemployment rate falling in february, the markets focus is on the first bank of england rate hike.

The main inflation report is important because it will stress test the markets assumption about the conditional tightening guidance of the bank of england has adopted under its new forward guidance.

There are three things that will be instrumental in terms of shaping the markets understanding.

Depending on the banks thoughts about business investment and the productivity growth.

The second thing is how inflationary this environment is in the current environment and the reality is we have seen a much more rapid than expected drop in the u.k. unemployment rate.

There is some suspicion that this would be understating the capacity and overstating inflation.

The third point, quickly.

But this is a market that is one way direction.

Yes, of course, the direction of policy is between steady rates and tightening rates.

With the market -- it looks highly unlikely that any member will feel the need to put even more tightening.

Good to chat to you.

We will get numbers from

This text has been automatically generated. It may not be 100% accurate.

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