China May Cut Rates Soon, Says Economist Who Called 2014 Move

The rapid deterioration in China’s economic data could spur the central bank to cut its benchmark interest rate as soon as Feb. 1, according to Barclays Plc economists.

“Existing measures are not sufficient to lower the financing costs of the real economy, in a down-cycle with rising credit risk and falling producer-price inflation,” the analysts led by Jian Chang wrote in a note. “Hence, lowering the risk-free rate is unavoidable, in our view,” she wrote.