China Braced for Fed as IMF Raises Outlook, Data Shows Stability
- PBOC has tightened after last two Fed interest rate increases
- Signs of cooling growth may mean PBOC doesn’t hike this time
David Lipton, first deputy managing director at the International Monetary Fund, discusses the IMF's assessment of China's economy and the urgency of reforms. He speaks exclusively on 'Bloomberg Markets: European Open.' (Source: Bloomberg)
China’s wobbly economy threw sand in the wheels of the Federal Reserve’s tightening plans back in late 2015. Today, the world’s number two economy poses no such constraint.
The International Monetary Fund was the latest to acknowledge China’s improved outlook, raising its growth forecast for 2017 for a second time this year to 6.7 percent on Wednesday. Hours earlier, data showed industrial output steadied in May and the consumer remained a prop for growth, while a pull-back in property investment suggested curbs were starting to bite.