MFG 2.0

China Growth Rate Cooling Says Credit Suisse

Credit Suisse's chief economist for Asia says in a recent Marketwatch article that the mainland economy peaked in Q3 last year.

According to the story, this slowdown will be a gradual one, and may expose rifts within China's leadership:

Tao expects a gradual cooling rather than a sharp slowdown, as cooling growth "should provide a reason for Beijing to tighten not too aggressively," he said.

However, the emerging outlook is far from clear as rival camps vie for influence over monetary policy.

The dovish camp will garner support for their position from December's PMI, though it's more likely, that inflation worries dominate the policy agenda, leading to "more aggressive tightening" in both interest rates and lending policies, Tao said.

http://www.partypills.asia/wp-content/uploads/2009/08/slowdown-large.jpg (Image Source: Party Pills Asia)

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