China Will Cut Rates Once More Before July, Analysts Say
(Bloomberg) — China’s central bank will further ease monetary policy in the first half of 2022 to stave off headwinds and ensure economic stability, according to a Bloomberg survey of economists.
The People’s Bank of China is expected to lower the amount of money banks have to keep in reserve in the first quarter of this year, bringing down the ratio for major banks to 11%. Major policy interest rates — the one-year medium-term lending facility rate, one-year loan prime rate, and seven-day reverse repurchase rate — will likely be reduced by 10 basis points each in the second quarter, according to economists surveyed by Bloomberg.
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