Economics
China’s Central Bank Likely to Cut Interest Rate for Second Time
- Most economists predict a reduction in MLF rate on Friday
- State Council says RRR will be lowered at ‘appropriate time’
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China’s central bank is expected to cut its key policy interest rate for the second time this year on Friday and reduce the reserve requirement ratio within days to help bolster a faltering economy under strain from Covid lockdowns.
Sixteen of the 22 economists surveyed by Bloomberg predict the People’s Bank of China will lower the interest rate on one-year policy loans -- 12 of them forecast a 10 basis-point reduction to 2.75% and four expect a 5-point drop. The rest see no change.