0212 GMT - The PBOC is likely to ease monetary policy primarily through liquidity injections measures such as the RRR cuts, HSBC economists say in a research note. The central bank faces a dilemma of uneven economic growth due to the drag of the property sector and the need to keep the yuan stable, the economists say. As a result, it will likely roll out another 50bps RRR cut this year and 20bps interest-rate cut in 2H, they say. The PBOC could also add a new monetary tool to directly buy treasury bonds in the secondary market to increase money supply, HSBC says. However, China is unlikely adopt ultra-low interest rates as it is neither necessary nor practical for the PBOC, they add. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
April 24, 2024 22:12 ET (02:12 GMT)
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