China state financial media say there could be more support for the economy incoming

The China Securities Journal cites analysts:

  • H2 economic growth is expected to be not as quick as in H1 (2021)
  • government could increase policy support

The article comes after last week’s RRR cut which was not a ‘targeted’ cut (these tend to stimulate, by making lending less restrictive, specific parts of the economy such as lenders to SMEs &/or others) but rather a broad cut. Estimates of funds released range circa 1tln yuan. 

What is immediately on the horizon is the People’s Bank of China’s monthly lending rates announcement, which comes on July 20. You’ll be familiar with these each month the 1- and 5-year loan prime rates. They are unchanged for 14 months.

Of course, interest rates cuts are only one possible tool. 

Invest in yourself. See our forex education hub.

Articles You May Like

Unemployment rate among Black Americans jumped in March, contrasting overall trends
Euro Declines After ECB Opens Door for Rate Cuts, Dollar Eases Following PPI Data
Pound Sterling is under increasing bearish pressure with 1.2500 support in play
5 reasons why gold miners make more money than gold investors
Reports that progress has been made in Gaza ceasefire talks

Leave a Reply

Your email address will not be published. Required fields are marked *