The Risks of a Tightening of Core Inflation

In terms of July that's now pretty much a lock like I did say in July so long as the base case is going to materialize they're going to hike in July again. The BI remains steadfast about promoting FX stability as its top priority it will instead continue to emphasize the use of other instruments like FX interventions especially after a hawkish F1c. We expect Beijing to add an extra issuance quota of around 500 billion RMB to local government special bonds we believe Beijing will eventually have to pay the role of the borrower and the spender of last resort by stepping up funding for state-owned enterprises and local governments via policy banks.