China’s central bank may be concerned about cutting interest rates too low, given the widening yield differential between China and the US, analysts say. Photo: Kyodo
China’s central bank may be concerned about cutting interest rates too low, given the widening yield differential between China and the US, analysts say. Photo: Kyodo
Yuan

China’s yuan dilemma: Beijing ‘faces a choice’ between cutting rates and a weakening currency

  • Depreciation pressure on the yuan may constrain China’s ability to expand monetary policy in the second half of the year, say experts
  • Combination of slowing growth in China and a strong dollar due to aggressive US tightening predicted to weigh on the yuan outlook

China’s central bank may be concerned about cutting interest rates too low, given the widening yield differential between China and the US, analysts say. Photo: Kyodo
China’s central bank may be concerned about cutting interest rates too low, given the widening yield differential between China and the US, analysts say. Photo: Kyodo
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