China National Development And Reform Commission Joins The Party, Says QE3 Likelihood Appears High
Just in case there was any concern which way China is leaning ahead of today's meeting, here is the missing clue:
- China's NDRC official says likelihood of US QE3 appears highs
- China's NDRC official says US QE3 will push up commodity prices and will intensify hot money flows
- China's NDRC official says QE3 will threaten Chinese price stability
Of course, China is quite adept at saying one thing and meaning another. And with inflation there continuing to surge, and no chance of a loose monetary policy any time soon, China will be very delighted to see the Fed to another round of easing. After all by the time, exported inflation hits China it will be at least 3-6 months down the line, by which point China should have its inflation problem under control. So with Goldman and China both egging Bernanke on, we doubt there is much surprise left in today's 2:15pm announcement.
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