ICYMI – UBS expect China rate cuts, RRR cut, more cash injections in H2 2023

UBS in response to the stimulus signals that came from China’s Communist Party Politburo:

UBS are expecting the People’s Bank of China to potentially cutt policy rates by 10 basis points in H2 of this year:

  • also expect the PBOC cut the reserve requirement ratio by 25bp
  • and to inject more liquidity into the banking system via open market operations

UBS forecast all this to help boost year-on-year credit growth to 10% by Q4.

Shanghai Composite higher yesterday

This article was written by Eamonn Sheridan at www.forexlive.com. Source