China’s ‘Dovish’ Politburo Flags Rate Cuts, Property Easing
- Officials seen continuing to cut policy rates, economists say
- Speedier special local bond issuance also likely after meeting
Source: Bloomberg
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China will likely keep cutting interest rates, speed up the issuance of infrastructure bonds and loosen more property policies after top leaders signaled fresh support for the economy is on the way.
The ruling Communist Party’s Politburo laid out a pro-growth tone at its key economic meeting this week that was “slightly more dovish” than markets expected, according to economists at Goldman Sachs Group Inc. and elsewhere. That’s bolstered sentiment: Chinese shares booked their best day in nearly eight months on Tuesday, while the yuan strengthened and the yield on China’s 10-year bonds rose.