• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Expectations for near-term easing cool after China central bank comments

September 8, 2021 by David Barret Leave a Comment

September 8, 2021

BEIJING (Reuters) – Expectations for near-term easing cooled and the yuan strengthened Wednesday after comments by central bank officials the day before that China will maintain prudent monetary policy and that there is no shortfall in base money.

China will not resort to flood-like stimulus, Pan Gongsheng, vice governor at the People’s Bank of China (PBOC), told a news conference on Tuesday.

The space for monetary policy is still relatively big, said Pan, in comments that some analysts said showed the Chinese central bank could conduct policy in a normal range.

Signs that China’s economy is losing steam and small firms are struggling had stoked market expectations of policy support sooner rather than later.

The PBOC last cut banks’ reserve requirement ratio (RRR) in July, in a move that surprised many market players. They speculated that the Chinese economy was weaker than realised, and that easier credit conditions were needed.

Signalling support for credit growth, the government said on Sept. 1 that the central bank would increase annual re-lending quotas by 300 billion yuan ($46 billion) to help small firms.

But the latest comments by PBOC officials cooled market expectations for imminent policy easing, and the Chinese yuan rose against the dollar on Wednesday, while Chinese blue chip share prices fell.

Speaking at the same event, Sun Guofeng, head of the monetary policy department at the PBOC, said there is no big shortfall of base money, and liquidity supply and demand will remain basically balanced in coming months.

“Based on the tone and messages from (the) press conference, we lower the probability of a targeted RRR cut in September-October to 50% from 70% previously,” Nomura wrote in a research note, adding that the PBOC could opt for more targeted tools to support groups such as SMEs instead.

Customs data released on Tuesday showed Chinese exports unexpectedly grew at a faster pace in August thanks to solid global demand, helping to take some of the pressure off the world’s No.2 economy, though economists are still pencilling in a slowdown in the coming months.

At a meeting at the end of July, the ruling Communist Party’s top decision-making body said China would stick with its current economic policies in the second half of the year.

PBOC’s Pan reiterated that stance, saying the central bank should “do a good job in its design of cross-cyclical policies and comprehensively consider the connection of monetary policy this year and the next.”

However, analysts from research firm Gavekal in Beijing said a cut in policy rates later this year cannot be ruled out.

“The logic of cross-cyclical policy is that rate cuts should be pre-emptive, so that they can stimulate corporate investment before weak demand leads companies to cut back,” they said.

“The case for an early rate cut is therefore getting stronger as growth momentum weakens in the second half.”

($1 = 6.4624 Chinese yuan renminbi)

(Reporting by Gabriel Crossley, Ryan Woo and Beijing Newsroom; Editing by Andrew Heavens, Ana Nicolaci da Costa & Simon Cameron-Moore)

Source Link Expectations for near-term easing cool after China central bank comments

David Barret
David Barret

Related posts:

  1. Best WordPress hosting of 2021
  2. Inflation shock and ECB hawks keep euro near 1-month high
  3. Soccer-Ronaldo claims world record with late late show
  4. U.N. warns catastrophe looms in Ethiopia’s north, urges government to end de facto aid blockade

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • If Birds Are Dinosaurs, Why Are None As Big As T. Rexes?
  • Psychologists Demonstrate Illusion That Could Be Screwing Up Our Perception Of Time
  • Why Are So Many Enormous Roman Shoes Being Discovered At Hadrian’s Wall?
  • Scientists Think They’ve Pinpointed Structural Differences In Psychopaths’ Brains
  • We’ve Found Our Third-Ever Interstellar Visitor, Orcas Filmed Kissing (With Tongues) In The Wild, And Much More This Week
  • The “Eyes Of Clavius” Will Be Visible On The Moon Today, Thanks To Clair-Obscur Effect
  • Shockingly High Microplastic Levels Found On Remote Mediterranean Coral Reef Island
  • Interstellar Object, Cheesy Nightmares, And Smooching Orcas
  • World’s Largest Martian Meteorite Up For Auction Could Reach Whopping $2-4 Million
  • Kimalu The Beluga Whale Undergoes Pioneering Surgery And Becomes First Beluga To Survive General Aesthetic
  • The 1986 Soviet Space Mission That’s Never Been Repeated: Mir To Salyut And Back Again
  • Grisly Incident In Yellowstone National Park Shows Just How Dangerous This Vibrant Wilderness Can Be
  • Out Of All Greenhouse Gas Emitters On Earth, One US Organization Takes The Biscuit
  • Overly Ambitious Adder Attempts To Eat Hare 10 Times Its Mass In Gnarly Video
  • How Fast Does A Spacecraft Need To Go To Escape The Solar System?
  • President Trump’s Cuts To USAID Could Result In A “Staggering” 14 Million Avoidable Deaths By 2030
  • Dzo: Hybrids Beasts That Are Perfectly Crafted For Life On Earth’s Highest Mountains
  • “Rarest Event Ever” Had A Half-Life 1 Trillion Times Longer Than The Age Of The Universe – How Did We See It?
  • Meet The Bille, A Self-Righting Tetrahedron That Nobody Was Sure Could Exist
  • Neurogenesis Confirmed: Adult Brains Really Do Make New Hippocampal Neurons
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version