Goldman Sachs says more aggressive loosening measures are needed in China

Via Bloomberg comes comments from Goldman Sachs on China:

• The Chinese government will defend short-term growth
• More aggressive loosening measures are needed
• The fall in interbank interest rate in recent weeks clearly demonstrated intent of the People’s Bank of China to ease financing conditions
• Further RRR cuts or its equivalent in terms of OMOs and special lending facilities are necessary to lower real interest rates
• GS believes this is likely to happen in the coming weeks

Bloomberg from a Goldman Sachs note from yesterday.

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And, reminder .... China Q1 GDP due at 0200GMT - and more data