BNP Paribas SA expects the Fed funds rate to rise into Q1 2027, with three hikes between Sep 2026 and Jan 2027. The bank cites healthy growth, persistent fiscal deficits and a surge in very large corporate issuance as upward pressure on long-term yields, which should flatten the yield curve. Analysts say the small tightening cycle should peak in Q1 2027, after which markets will digest Fed credibility and push yields modestly lower from Q2 2027.

On Sept 14, Cao Yuanyuan, director of the PBOC Financial Markets Department, said at a State Council policy briefing that large firms' expansion of accounts payable and other interest‑free liabilities is squeezing SMEs' cash flow, forcing SMEs to borrow from banks and effectively shifting financing costs onto smaller firms. She warned the resulting structural mismatch is impairing monetary policy transmission.

Foreign Ministry spokesman Guo Jiakun said at a routine briefing on Sept. 14 that Xi and Modi have met successfully for three consecutive years and reached a central consensus that China and India should be partners. Xi said the countries’ different national conditions mean they can complement each other’s strengths, support one another and pursue common development. He urged calibrating direction on the basis of an objective, rational strategic assessment, pursuing win‑win cooperation, using mutual respect and political wisdom to remove interference, and advancing stable, long‑term China‑India ties through open, inclusive multilateral cooperation.