The People’s Bank of China (PBOC) is seen cutting the reserve requirement ratio (RRR) and the over-five-year Loan Prime Rate (LPR) further in 2023, “as authorities implement “accurate and forceful” monetary policy,” China Securities Journal reported, citing experts.
Additional quotes
“To support the real estate sector, cuts to the over-five-year LPR are likely, with Beijing conducting “targeted rate reduction” to help with the property sector recovery.“
“On the demand side, conditions for buyers will be promoted, such as lowering down payment ratios and reducing the interest rate of mortgage loans.“
“Stable economic growth and employment are the current primary focus of policymakers.”
Market reaction
At the time of writing, USD/CNY is trading flat at 6.7780, underpinned by the pause in the US Dollar decline.