TD Securities cites soft April data and weak consumer sentiment, anticipating targeted fiscal stimulus to support growth.
China’s central bank maintained the yuan near 6.8 against the dollar as April economic data underperformed, driven by higher oil prices and subdued consumer sentiment. Analysts highlight weak domestic demand as a key concern for policymakers.
The People’s Bank of China has adopted a cautious stance, avoiding aggressive easing despite signs of economic strain. Prior data showed mixed results, with industrial output stabilizing but retail sales missing expectations. Comparable periods suggest stimulus measures may focus on infrastructure to offset sluggish private consumption.
Markets await further policy signals, with expectations leaning toward targeted fiscal support rather than broad monetary loosening.