Fred Hu, chairman of Primavera Capital Group, comments on China’s decision to cut benchmark interest rates for the second time in a month.
“The central bank is taking a more aggressive stance towards easing monetary and credit conditions as the Chinese economy continues to face significant downside risks.”
“Falling inflation has also increased the PBOC’s policy flexibility to cut interest rates. Monetary easing should play a helpful role in stimulating domestic demand and mitigating the risk of a hard landing in China.”
— With assistance by John Liu, and Kevin Hamlin