China's third-quarter GDP grew 4.5% year on year, beating a 4.4% forecast. The same day, central bank governor Pan Gongsheng announced plans to make the overnight repo rate the main policy rate and to build a liquidity backstop against a bond selloff.
EY chief economist Gregory Daco flags a widening split as Q3 growth returned to the official target on an export boom while property investment kept collapsing. Source
China's third-quarter GDP rose 4.5% year on year against a 4.4% forecast (4.3% in Q2), according to the National Bureau of Statistics (NBS). Quarterly growth was 1.2% against a 1.1% forecast (0.9% previous). A print that strong normally lets a central bank stay quiet. People's Bank of China (PBOC) Governor Pan Gongsheng did the opposite. At the same day's Financial Street Forum he announced plans for a rebuilt policy rate, a backstop for a bond selloff and wider access to emergency liquidity.
