PBOC Still Has Room For Policy Rate Cut

The People's Bank of China still has room for lowering the policy interest rate to stabilise the economic recovery and reduce government debt pressure, said Zhang Jun, chief economist at Galaxy Securities. Money supply will likely maintain steady growth to solidify the recovery especially when real estate is still adjusting, said Wang Qing, analyst at Golden Credit Rating. Wang noted that the subsequent credit supply will not only emphasise the new scale, but also focus on precise lending and revitalising existing credit funds, as the central bank said in its Q3 monetary-policy report that it will “accurately grasping the laws of supply and demand and new characteristics of money and credit”. (Source: Securities Daily)