EFTA Document EFTA01362107

Deutsche Bank Research Asia China Economic,: Data Flash The RMB depreciation series 2: CNY forecast revision Summery: This round of rapid RMB depreciation has apparently come to an end (Figure 1). We now project USD/CNY to be around 6.5 (6.3 before) by end- 2015 and 6.9 (6.5 before) by end-2016. We maintain our view that there will be one more interest rate cut this year (in Q3), but believe more RRR cuts will be seen down the road-one in each of the coming quarters of 2015 and 2016,