That headline is from an overnight piece at Reuters.
The main summary points it makes are:
- Economic recovery looking increasingly shaky
- PBOC seen easing further in response - policy insiders
- PBOC likely to lower key lending rate next week to spur demand
- Imminent RRR cut seen unlikely due to ample cash in economy
- PBOC has limited room to ease due to concerns over inflation, capital flight
On easing, the next setting of loan prime rates is due on Monday (August 22). Given the small cut to the MLF earlier this week expectations are high for a cut to LPRs also.
Check out that link to Reuters above for more if you are interested.
Pic via Bloomberg:
