Skip to content

Yuan at 2008 Low Fuels Speculation Monetary Easing to Slow

  • Analysts say cuts to interest rates, RRR unlikely in October
  • That would complicate efforts to spur slowing economy
Bloomberg business news
WATCH: Larry Hu, Head of China Economics at Macquarie Group, discusses his outlook for China’s macro economy and the sliding yuan.Source: Bloomberg
Updated on

The yuan’s slump to the weakest since the global financial crisis in 2008 has fueled speculation China’s central bank will slow the pace of monetary easing to avoid adding further pressure on the currency.

The People’s Bank of China will probably delay any major stimulus moves, like lowering interest rates and the reserve requirement ratio for banks, according to analysts including from Australia & New Zealand Banking Group Ltd. and Tianfeng Securities Co.