16 Jul 2014
China's GDP growth surprised on the upside - ING
FXStreet (Łódź) - Tim Condon from ING believes that the positive Chinese Q2 GDP numbers point to the fact that macro policy fine-tuning managed to give the economy a bounce.
Key quotes
"GDP growth surprised on the upside in the second quarter (7.5% YoY/2.0% QoQ SA vs. consensus 7.4%/1.8%, prior 7.4%/1.5% revised from 1.4%)."
"Today’s data dump included June data on industrial production revealing it to have been a big contributor to the upside GDP surprise (9.2% YoY vs. consensus 9.0%, prior 8.8% – first figure)."
"As it did last year, macro policy fine-tuning managed to give the economy a bounce in the second quarter."
"Based on last year’s example we expect the bounce to persist through the current quarter."
"Our baseline scenario is that fine-tuning will obviate the need for broad monetary easing via an RRR cut or a policy interest rate cut."
Key quotes
"GDP growth surprised on the upside in the second quarter (7.5% YoY/2.0% QoQ SA vs. consensus 7.4%/1.8%, prior 7.4%/1.5% revised from 1.4%)."
"Today’s data dump included June data on industrial production revealing it to have been a big contributor to the upside GDP surprise (9.2% YoY vs. consensus 9.0%, prior 8.8% – first figure)."
"As it did last year, macro policy fine-tuning managed to give the economy a bounce in the second quarter."
"Based on last year’s example we expect the bounce to persist through the current quarter."
"Our baseline scenario is that fine-tuning will obviate the need for broad monetary easing via an RRR cut or a policy interest rate cut."