Helen Qiao, chief economist for Morgan Stanley Asia Ltd., comments on China’s decision to cut interest rates for the first time since 2008.
“I think that’s in line with our expectation. As we argued, interest rate cuts in both lending and deposit rates will help boost both investment and consumption. Lowering the funding cost in the economy to help support investment projects is the right thing to do.”
“We now have one more interest rate cut in our forecast left and possible RRR cuts.”