Sizeable renminbi devaluation a major tail risk, says Baml
Analysts' central case is for RMB to stay steady, but currency wars could accelerate
A sizable devaluation in the renminbi is one of the top tail risks for the global economy in 2015, as the threat of imported deflation has accelerated sharply since the European Central Bank (ECB) joined the list of policymakers who turned to negative interest rates and quantitative easing (QE) programmes, according to a research report from Bank of America Merrill Lynch.
"The market is currently pricing about a 30% probability of a 10% devaluation of the onshore renminbi (CNY) this year
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