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China Tries To Boost Economy And Eases Benchmark Rates For First Time Since Oct Amid Tariff Tensions

Quotes

    • 88:88
      Lu Ting
      We still believe it will be quite challenging for Beijing to achieve its 'around 5 per cent' growth target unless it rolls out a sizable stimulus package."
      ABP Live
      Nomura’s chief China economist Ting Lu remarked
    • 88:88
      The reduction in deposit costs partly mitigates the impact of lower asset yields, which remain under pressure as banks are expected to support the real economy.”
      ABP Live
      Moody’s analyst Nicholas Zhu commented
    • 88:88
      At the margin, the rate cuts may provide a minor tailwind for stocks, but it was widely expected and it’s obvious that credit access is not the thing holding borrowers back right now. Confidence remains weak, and the government needs to do more to improve that via the fiscal channel,
      Euronews
      David Scutt, APAC market analyst at StoneX, Australia, said
    • 88:88
      The resumption of US-bound shipments will naturally reduce the need to re-route shipments. Front-loading will inevitably be followed by a significant payback effect after the 90-day pause ends on 12 August,
      Euronews
      the bank said
    • 88:88
      With the resumption of US-China trade talks, the left-tail risk of miscalculation between the US and China could be more contained than before, in our view,
      Euronews
      the bank stated
    • 88:88
      But modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity,
      The Independent
      Huang said
    • 88:88
      The central bank is likely to switch to a wait-and-see approach in coming months unless external geopolitical risks deteriorate enough to extinguish hopes that the economy can stabilise,
      Reuters
      Sun said
    • 88:88
      One purpose is to repair commercial banks' net interest margin and get prepared for the future,
      Reuters
      Xing said, expecting one more rate cut by the end of July
    • 88:88
      The policy to further reduce interest rate will help lower mortgage loans costs, which also should stimulate the housing consumption demand,
      Global Times China
      Yan said
    • 88:88
      The cut in LPR, the first round this year, has shown that the comprehensive financial support policies have led to further easing of monetary and credit policies, which in turn has reduced the borrowing costs of medium- and long-term funds,
      Global Times China
      Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Tuesday
    • 88:88
      Deflation could linger, given still elevated tariffs and reactive policy,
      CNBC
      Morgan Stanley added, as higher tariffs will ultimately dampen external demand after the near-term export front-loading activity tapers off, exacerbating domestic excess capacity issue
    • 88:88
      The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,
      The Manila Times
      Zichun Huang, China economist at Capital Economics, said in a note
    • 88:88
      Today's reductions... probably won't be the last this year,
      The Manila Times
      Huang said