- Analytics
- News and Tools
- Market News
- China sluggish growth puts more rate cuts on the table - ANZ
China sluggish growth puts more rate cuts on the table - ANZ
In view of ANZ analysts, the gloom hanging over China’s economy is unlikely to go away soon due to challenges on both domestic and external fronts.
“With key economic indicators posting downside surprises over the past few months, we expect China’s Q2 GDP to test a historic low of 6.2%, when the data is released next Monday, 15 July. Although domestic demand could have given a boost to economic activities such as infrastructure investment, there aren’t yet signs of a robust recovery despite the fund-raising efforts of local governments via bond issuance. Consumer demand has also been a concern as automobile sales have slumped by more than 17% y/y in the past two months. To stabilise growth, the People’s Bank of China (PBoC) will maintain an accommodative bias for the rest of the year, in our view. We expect the central bank to trim the 7-day reverse repo rate by 5bps, as well as shave 100bps from the reserve requirement ratio (RRR). We also expect the 10Y CGB yield to breach the 3.00% mark in the next few months.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
