Reuters' latest poll shows that institutions are still favouring the Chinese economy to slow further despite policy support
- China 2019 GDP growth seen at 6.2% (January poll at 6.3%)
- China 2020 GDP growth seen at 6.0%
- China 2019 inflation seen at 2.1% (January poll at 2.3%)
- Sees PBOC keeping benchmark lending rates steady in 2019
- Sees PBOC cutting RRR by another 150 bps before the end of the year
The numbers suggest that the 88 institutions surveyed see the Chinese economy slowing to a 29-year low of 6.2% but that still falls within the target range set out by authorities of between 6.0% and 6.5%. I wouldn't be too fussed about the numbers to be honest.
Just take polls like these as a general sentiment indicator. In this case, it suggests that traders/investors are still rather skeptical on the Chinese economy rebounding and that the global growth slowdown will continue to be a key theme for financial markets throughout this year and next year as well.