On May 9, the central price of RMB was 7.1028, down 12 points. The median price for the previous trading day was 7.1016.
Fed's Collins: Reaching 2% inflation may take longer than expected
Federal Reserve Collins said that reaching 2% inflation may take longer than expected; the policy is moderately restrictive and appropriate for risk; interest rates should remain unchanged until confidence increases; the full impact of restrictive policies may not have been seen; uncertainty is high, strengthening the need for the Fed to be patient; it is necessary to slow the growth rate of the US economy, thereby putting inflation on a path of falling 2%; since 2024, no decline in inflation has been seen; it is expected that demand will eventually slow down, but there is uncertainty about the timing.
There is little risk that the RMB exchange rate will depreciate more than expected
Looking ahead to the late-stage trend of the RMB exchange rate, Li Chao, chief economist of Zheshang Securities, analyzed that in the short term, on the one hand, there is still room for restoration of the endogenous dynamics of the Chinese economy; on the other hand, the US economy is more resilient. Expectations of interest rate cuts by the Federal Reserve may retreat further during the year, and the US dollar index may fluctuate at a high level, making the probability that the RMB exchange rate will remain volatile in the short term. However, there is little risk that the RMB exchange rate will depreciate beyond expectations. The central bank has made a firm statement on the exchange rate issue. If it faces greater depreciation pressure in the future, it is expected that it will continue to strengthen the monitoring, analysis and risk prevention of cross-border capital flows, and may continue to increase relevant policies or expected guidance measures in the exchange rate field to stabilize exchange rate trends.