CICC: China may moderately ease monetary policies, continue structural reform
(VOVWORLD) - China’s central bank will moderately loosen its monetary policies and continue its financial supply-side structural reforms as domestic and external uncertainties rise, China International Capital Corporation (CICC) predicts.
(Photo: AFP/ VNA)
|
Given the downward pressure of the global economy, the People's Bank of China (PBOC), the central bank, is expected to slightly loosen its monetary policies to tackle the falling demand caused by tightening financial supervision and rising US-China trade tensions, said the CICC, an investment banking firm, in an analytical report. The PBOC is likely to lower the interest rates of open market operations (OMO) while adopting the reserve requirement ratio cut to maintain market liquidity and stable growth in the money supply, the CICC reckoned.
Experts predict that the central bank will continue to focus on financial supply-side reform to cope with the complex structural issues in the Chinese economy.