China’s central bank outlook fuels calls for policy easing – MENAFN.COM

China’s central bank outlook fuels calls for policy easing – MENAFN.COM

The People%E2%80%99s Bank of China headquarters building in Beijing. China%E2%80%99s central bank fanned expectations of further monetary policy easing, saying in its latest quarterly report that inflation pressures are "controllable," while highlighting risks to the economic growth outlook. (MENAFN - Gulf Times) China's central bank fanned expectations of further monetary policy easing, saying in its latest quarterly report that inflation pressures are"controllable, while highlighting risks to the economic growth outlook. The People's Bank of China largely reiterated its stance of stable policy, pledging to make it more forward-looking and effective, while maintaining ample liquidity. The surge in producer inflation in the first half was likely temporary, and the domestic recovery is not yet solid, it said. The fast-spreading delta virus variant is restricting travel and spending in parts of China, prompting some economists to downgrade their growth forecasts for the world's second-largest economy. Many of them are predicting another reduction in the reserve requirement ratio for banks after July's surprise cut, while a few are forecasting lower interest rates as well. China Daily cited economists in a report Tuesday saying the PBoC's remarks could be a signal that it's preparing to cut the RRR again or even lower policy rates.