If today the whole Western world and the USA are struggling hard with inflation by tightening monetary policy (PREP), with a slight look at its economy, then China, which has experienced not the best 2022 year of its economic development, mainly due to epidemiological restrictions, I intend to compensate lost in the very near future and restore the soy economy by softening the PREP.
Although inflation in China has reached its highest values over the past year, the trend still has a downward trend. The price growth rate for the last reporting month decreased by 1.1% and reached its minimum value of 1%.
It is no secret that the pricing policy of the Russian Federation regarding oil and its products supplied to the PRC also contributes to the implementation of such a softer scenario for inflation expectations in the PRC.
The other day, the People's Bank of China decided to reduce the reserve requirements rate to 7.6%, which indicates the release of additional money supply to the manufacturing sector. China intends to achieve the planned level of national economic growth of 5% in 2023.
In addition, a meeting of the leaders of Russia and China is scheduled in the near future, which will largely clarify the situation about the prospects for further increasing trade turnover between these countries in the face of falling demand for Chinese goods from the Western world.
