China rate cut expected before July: analystsMONETARY EASING: After China’s central bank cut lending rates on Thursday, ecomomists think that one more rate reduction could be in store by mid-yearBloombergChina’s central bank could further ease monetary policy in the first half of this year to stave off headwinds and ensure economic stability, a Bloomberg survey of economists showed. The People’s Bank of China (PBOC) is expected to lower the amount of money banks must keep in reserve in the first quarter of this year, bringing down the ratio for major banks to 11 percent. Major policy interest rates — the one-year medium-term lending facility rate, one-year loan prime rate and seven-day reverse repurchase rate — are likely to be reduced by 10 basis points each in the second quarter, the survey said. People walk past the headquarters of the People’s Bank of China in Beijing on Sept. 28, 2018. The central bank cut borrowing costs earlier this week, with banks following the move on Thursday by reducing the interest rate on one-year and five-year loans.

Source: Taipei Times January 21, 2022 20:29 UTC