China's Central Bank May Introduce Additional Monetary Easing

Dow Jones
08/11

0355 GMT - China's central bank might introduce additional monetary easing due to moderating inflationary pressures and growth headwinds, according to UOB's Ho Woei Chen in a research note. This could include policy-rate reductions and further cuts to the reserve requirement ratio for banks, the economist says. For now, UOB's baseline view remains that the People's Bank of China will keep the benchmark seven-day reverse repo rate unchanged at 1.40% through 2026. That said, the bank expects room for a 25-50 basis point reduction in the RRR. This would help inject liquidity into the banking system and lower banks' funding costs, UOB says.

 

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