China bounced back strongly from the initial impact of the coronavirus in early 2020, but economic momentum has slowed in recent months. Photo: AFP
China bounced back strongly from the initial impact of the coronavirus in early 2020, but economic momentum has slowed in recent months. Photo: AFP

China’s first benchmark rate cut in 20 months signals ‘serious easing cycle is unfolding’

  • Some analysts say Beijing should ease policy further to finance infrastructure, as the country may have to defend a growth rate of 5 per cent in 2022
  • The LPR adjustment followed a 50-basis-point cut to the reserve requirement ratio last Wednesday and a partial cut of the relending rate a week earlier

Topic |   Central banks
China bounced back strongly from the initial impact of the coronavirus in early 2020, but economic momentum has slowed in recent months. Photo: AFP
China bounced back strongly from the initial impact of the coronavirus in early 2020, but economic momentum has slowed in recent months. Photo: AFP
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