There shall be reforms for all
- The details of the Chinese plenary session are out � surprisingly rich as to detail and broad as to the scope of proposed reforms. Measures are proposed that will impact wide areas of the economy, and as such the plans exceed market expectations.
- It is worth cautioning that the reform proposals will not be implemented at once, or even especially quickly. We would not regard them as being positive per se, but instead characterise the reform package as reducing tail risks to the Chinese economic outlook.
- The US still continues to consider the likely path of the Federal Reserve's policy. This week sees the release of the October FOMC minutes (on 20th November) which should allow an opportunity to improve the recently woeful quality of communication.
- The ECB is moving in quite a different direction from the US Fed, with Chief Economist Praet reiterating earlier remarks that kept open the option of quantitative policy. Praet did indicate that quantitative policy would not have to be bond buying, and could take the form of liquidity injections into banks.
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