Weekly Economic Briefings > Emerging Markets Weekly Economic Briefing

Amid continued downward pressures on growth, policymakers have recently shifted course and now seem to insist again on broadly meeting growth targets. To that end we expect them to continue to take incremental easing measures.We do not necessarily have high expectations on the speed of market reform implementation. But we remain confident in the ability of policymakers to broadly achieve the macroeconomic targets. We think there is still policy space, however less so on the monetary side. This will continue to shape monetary policy. Fiscal policy does not face constraints and we expect it to be eased more. The attitude of policymakers to the RMB should remain influenced by RMB internationalization after the very likely SDR inclusion. We expect little movement in the short term, 3-4% depreciation of the RMB against a strengthening USD in 2016, and resumption of trend appreciation versus the USD in the medium term.