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27 Feb 2015
PBOC: More easing measures sooner rather than later - RBS
FXStreet (Bali) - Gao Qi, Trading Strategyist, EM Asia, at RBS, expects more monetary easing measures by the PBOC sooner rather than later, along with strengthening proactive fiscal policy, Qi notes.
Key Quotes
"China’s Finance News, a newspaper owned by the PBoC, carried articles discussing risks of deflation and necessaries of monetary policy easing and proper liquidity conditions on Wednesday and Thursday."
"Meanwhile, such comments were also cited by People’s Daily that is the governing party CCP’s “throat and tongue”. "
"Local media National Business Daily reported yesterday that the PBoC approved an additional 50 bp RRR cut for total 23 banks in eastern Zhejiang province effective 16 February."
"We expect the PBoC to deliver more targeted and system-wide easing measures including policy rate and RRR cuts sooner rather than later in the coming weeks to expand its monetary base, raise money multiplier and guide funding cost lower, particularly in the context of global competitive monetary easing. Moreover, stabilizing growth in bank loans is required to offset decelerating non-bank credit expansion."
Key Quotes
"China’s Finance News, a newspaper owned by the PBoC, carried articles discussing risks of deflation and necessaries of monetary policy easing and proper liquidity conditions on Wednesday and Thursday."
"Meanwhile, such comments were also cited by People’s Daily that is the governing party CCP’s “throat and tongue”. "
"Local media National Business Daily reported yesterday that the PBoC approved an additional 50 bp RRR cut for total 23 banks in eastern Zhejiang province effective 16 February."
"We expect the PBoC to deliver more targeted and system-wide easing measures including policy rate and RRR cuts sooner rather than later in the coming weeks to expand its monetary base, raise money multiplier and guide funding cost lower, particularly in the context of global competitive monetary easing. Moreover, stabilizing growth in bank loans is required to offset decelerating non-bank credit expansion."