PBOC May Further Cut Rates in H1: Herald

The People’s Bank of China is likely to cut interest rates once or twice following a 10-bp cut to major policy rates this week, possibly in March or June, as it may need to further boost credit and help stabilize growth before the Federal Reserve begins rate hikes, wrote Ming Ming, deputy research head of CITIC Securities, in the 21st Century Business Herald. The PBOC is also expected to further lower the reserve requirement ratios and introduce more structural tools, said Ming. In the medium term, monetary policy tends to loosen, and the interest rate of China Government Bonds has room to fall further, Mind said.