What's ahead from the People's Bank of China, China's Global Times with the heads up:
- highly likely to announce interest rate cuts or reserve requirement ratio (RRR) cuts in the second half of the year
- to help accelerate an economic recovery from the negatives induced by the COVID-19 outbreak and external uncertainties
- cuts are most likely to be made on interest rates for the standing lending facility (SLF) and RRR
- PBOC will use a variety of tools including reserve requirement ratio cuts, interest rate reductions and re-lending
- the Bank wants M2 money supply and aggregate financing to grow at notably higher rates than last year
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GT citing Chinese experts examining the monetary policy related information in this year's Government Work Report.
This policy is aimed at more support for liquidity, firms and the consumer. If it lifts China's economy it should be supportive of China and China-proxy trades.
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