China’s manufacturing and non-manufacturing PMI data surprised on the upside
China’s manufacturing and non-manufacturing PMI numbers came in stronger than expected, allaying concerns around imminent easing.
The recent PBOC overnight reverse repo carried a lower-than-expected coupon of 1.25%, compared to analysts’ expectations of 1.3%-1.4%.
The 7-day reverse repo rate remains the key gauge for determining the monetary policy stance, and the operational target of monetary policy in China is not expected to change immediately to the overnight rate.