Good time for PBOC to cut interest rates – China Press

Dhwani Mehta FXStreet

“Now is a good time for the People's Bank of China (PBOC) to cut interest rates,” China Daily reports, citing a senior researcher at the Chinese Academy of Social Sciences (CASS).

Key quotes

“Domestic demand remains insufficient.”

“Monetary policy of the United States has not entered a tightening cycle.”

"Domestic consumption remains relatively weak compared with the pre-COVID level and growth in the labor market has come to a standstill.”

In another editorial, China Daily said that there is no need for the country’s central bank to add in Open Market Operation (OMO) funds in the short term.

Market reaction

USD/CNY was last seen trading at 6.4820, almost unchanged on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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