China Rate-Cut Calls Brought Forward to This Week Amid Covid Hit
- Majority of economists expect MLF rate will be cut on Tuesday
- Government set ambitious GDP growth target of about 5.5%
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Economists have brought forward their calls for another interest rate cut in China after credit growth worsened and the biggest Covid outbreak since Wuhan darkens the outlook for the world’s second-biggest economy.
Nine of the 17 economists polled by Bloomberg expect the People’s Bank of China to lower the interest rate on one-year policy loans by 10 basis points to 2.75% on Tuesday. One of them forecast a 5-point reduction to 2.8%, while the rest see no change.