China’s Rate-Cut Calls Grow, Testing Resolve to Defend Yuan
- Roughly one out of five surveyed expects MLF rate cut in June
- Weak fundamentals, sluggish credit demand warrant a cut: BNP
Outside the People's Bank of China (PBOC) building in Beijing.
Photographer: Andrea Verdelli/BloombergThis article is for subscribers only.
Voices calling for a rate cut by China’s central bank are getting louder, and Beijing faces a choice in helping an economy that’s showing signs of an uneven recovery or preventing an even steeper drop in its currency.
In a Bloomberg survey for the People’s Bank of China’s Monday decision on the so-called medium-term lending facility rate, 21% of those queried — 3 out of 14 — said they expected a cut. That compares to 10% in May and no one expecting a cut in April.