China central bank is moving faster towards its policy limits
4 days, 23 hours ago

China central bank is moving faster towards its policy limits

Live Mint  

* PBOC expected to cut rates more aggressively this year * Cenbank dropped prudent stance but may have to stay cautious * Bond buying suspension highlights PBOC constraints * Room for more rate, RRR cuts rapidly narrowing * More easing also raises risk of asset bubbles By Kevin Yao BEIJING, - China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to stimulate the economy and soften the blow of impending U.S. tariff hikes, but in doing so it risks quickly exhausting its firepower. "Short versus long term, internal versus external, and exchange rate versus interest rates – these are multiple conflicts," said Xing Zhaopeng, ANZ's senior China strategist Faced with deflationary pressures and mounting headwinds to already stuttering growth, China's top leaders in December ditched their 14-year-old "prudent" monetary policy stance for a "moderately loose" posture. "If credit demand doesn't pick up, further rate cuts may not lead to increased lending and could instead create financial market bubbles," Hu said, adding that it would also hurt bank profitability and raise capital outflow risks by weakening the currency too fast and curbing confidence in the economy. "A moderately loose monetary policy will involve both interest rate and quantitative measures," said Xu Hongcai, deputy director of the economic policy commission at the state-backed China Association of Policy Science.

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History of this topic

China’s central bank reiterates easing pledges amid policy dilemmas
Trending News
18 hours, 49 minutes ago

China’s central bank reiterates easing pledges amid policy dilemmas

Live Mint  

China’s central bank again vowed to help the economy grow this year, firming expectations of more monetary easing as it walks a fine line between conflicting policy targets complicated by a possible trade war with the U.S. Officials at the People’s Bank of China said at a Tuesday briefing that they will ramp up support for the economy with measures …

BOK Vows to Be Flexible on Rate Cuts Amid Political Uncertainty
Trending News
1 week, 6 days ago

BOK Vows to Be Flexible on Rate Cuts Amid Political Uncertainty

Live Mint  

-- Bank of Korea Governor Rhee Chang-yong vowed to take a flexible approach to future interest rate cuts while closely monitoring risks in the face of increased political and economic uncertainty. “The household debt flow has stabilized due to strengthening of macro-prudential policies but if rate cuts continue, that could become a source of anxiety so we need to monitor …

The Fed is trying—again—to size up Trump
2 weeks, 5 days ago

The Fed is trying—again—to size up Trump

Live Mint  

Federal Reserve Chair Jerome Powell is walking an old tightrope into 2025: He is trying to avoid appearing confrontational with Donald Trump, even though some of his colleagues are signaling unease that the president-elect’s policies might rekindle inflationary pressures. Political antennae Powell said at a news conference last week that some officials accounted for potential policy changes in their new …

Fed lowers interest rates again but pares back plans for more cuts in the future
4 weeks ago

Fed lowers interest rates again but pares back plans for more cuts in the future

LA Times  

Federal Reserve Chairman Jerome Powell has led the central bank’s battle to bring inflation down to 2%, but progress has stalled in recent months. Stocks plunged after the Fed announced its quarter-point rate reduction and updated projections, which halved the number of rate cuts for next year. And one Fed voting member, Beth M. Hammack, president of the Fed Bank …

US Fed cuts interest rates but cautions for year ahead
Trending News
4 weeks ago

US Fed cuts interest rates but cautions for year ahead

Al Jazeera  

Slower progress on inflation translates into a slower pace of rate cuts, especially as economic growth is brisk. “Economic activity has continued to expand at a solid pace” with an unemployment rate that “remains low” and inflation that “remains somewhat elevated”, the central bank’s rate-setting Federal Open Market Committee said in its latest policy statement on Wednesday. That is half …

The RBA is preparing for all economic scenarios, including an interest rate hike
1 month ago

The RBA is preparing for all economic scenarios, including an interest rate hike

ABC  

The Reserve Bank may have dropped the phrase "not ruling anything in or out" in its interest rates commentary, but that does not mean an interest rate hike is completely out of the question. That is because, as Dr Hunter explained, it would mean the RBA's key policy goal of achieving its mid-point annual inflation target of 2.5 per cent …

Rupee slips to record low but central bank steps in to curb losses
1 month ago

Rupee slips to record low but central bank steps in to curb losses

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 12 - The Indian rupee declined to its all-time low on Thursday, pressured by dollar bids in the non-deliverable forwards market and from importers while intervention by the central bank kept a lid on losses, traders said. Heightened dollar demand in the NDF market alongside strong dollar buying by local importers, including oil companies, have …

China pledges more borrowing and interest rate cuts to counter Trump’s tariff threats
1 month ago

China pledges more borrowing and interest rate cuts to counter Trump’s tariff threats

CNN  

China pledged Thursday to increase the budget deficit, borrow more and loosen monetary policy to maintain stable economic growth as it girds for more trade tensions with the United States where Donald Trump is returning as president. A separate readout from state news agency Xinhua, watched by financial markets for references to the yuan currency, kept a pledge to “maintain …

China eases monetary policy stance, vows more fiscal support
1 month ago

China eases monetary policy stance, vows more fiscal support

Live Mint  

China’s top leaders plan to loosen monetary policy and expand fiscal spending next year, as Beijing braces for a second trade war when Donald Trump takes office next month. The 24-man Politburo led by President Xi Jinping announced it will embrace a “moderately loose” strategy for monetary policy in 2025, marking its first major shift in stance since 2011. The …

China still has further room for RRR, interest rate cuts
1 month ago

China still has further room for RRR, interest rate cuts

China Daily  

By Sheng Songcheng | China Daily | Updated: 2024-12-09 10:35 The People's Bank of China, the country's central bank, proposed in its third quarter monetary policy implementation report that a reasonable pickup in prices should be taken as a key consideration in monetary policymaking to keep prices at a reasonable level. And with the central bank maintaining its stance on …

China vows to ramp up moves to spur economic growth in 2025
1 month ago

China vows to ramp up moves to spur economic growth in 2025

CNN  

China will adopt an “appropriately loose” monetary policy next year, alongside a more proactive fiscal policy to spur economic growth, the Politburo was quoted as saying Monday. “A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments,” the readout said. “We think it points to strong …

Fed’s Waller says inclined at this point to cut rates in December
Trending News
1 month, 1 week ago

Fed’s Waller says inclined at this point to cut rates in December

Live Mint  

By Howard Schneider WASHINGTON, Dec 2 - Federal Reserve Governor Christopher Waller said on Monday he was inclined to cut the benchmark interest rate at the Dec. 17-18 meeting as monetary policy remained restrictive enough to keep putting downward pressure on inflation, while the labor market was roughly in balance, something the Fed wants to maintain. "Policy is still restrictive …

South Korea’s central bank cuts key interest rate to nurse a slower economy
1 month, 2 weeks ago

South Korea’s central bank cuts key interest rate to nurse a slower economy

Associated Press  

SEOUL, South Korea — South Korea’s central bank lowered its key policy rate for a second straight month and said the country’s economy will grow at a slower pace than it initially anticipated. The bank said the country’s trade-dependent economy faces growing uncertainty in global economic trends and inflation that could be impacted by the policies of President-elect Donald Trump …

It’s Reasonable to Consider Rate Cut Next Month, Fed’s Kashkari Says
1 month, 2 weeks ago

It’s Reasonable to Consider Rate Cut Next Month, Fed’s Kashkari Says

Live Mint  

-- Federal Reserve Bank of Minneapolis President Neel Kashkari said it is still appropriate to consider another interest-rate cut at the central bank’s December meeting. “It’s still a reasonable consideration,” Kashkari said Monday on Bloomberg Television in response to a question about whether policymakers should reduce borrowing costs by a quarter point at their last meeting of the year. “Right …

Federal Reserve cuts its key interest rate by a quarter-point after Trump's election win
Top News
2 months, 1 week ago

Federal Reserve cuts its key interest rate by a quarter-point after Trump's election win

Hindustan Times  

The Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump’s presidential election victory this week. Federal Reserve Board Chairman Jerome Powell The rate cut follows a larger half-point reduction in September, and it reflects the Fed’s renewed focus on …

Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty
2 months, 1 week ago

Federal Reserve cuts its key interest rate by a quarter-point amid postelection uncertainty

Associated Press  

WASHINGTON — The Federal Reserve cut its key interest rate Thursday by a quarter-point in response to the steady decline in the once-high inflation that had angered Americans and helped drive Donald Trump’s presidential election victory this week. When its latest policy meeting ended Thursday, the Fed issued a statement noting that the “unemployment rate has moved up but remains …

China's Central Bank Cuts Key Interest Rates to Boost Economy
2 months, 3 weeks ago

China's Central Bank Cuts Key Interest Rates to Boost Economy

The Hindu  

China's central bank has cut two key interest rates to boost the economy. The one-year Loan Prime Rate (LPR) and five-year LPR were cut from 3.35% to 3.1% and 3.85 to 3.6% respectively. These cuts are aimed at reviving spending and boosting economic growth. However, the economy has been struggling with weak consumption and a prolonged debt crisis in the …

Xi Jinping pledges ‘forceful’ rate cuts to halt China’s economic crisis
3 months, 2 weeks ago

Xi Jinping pledges ‘forceful’ rate cuts to halt China’s economic crisis

The Telegraph  

Xi Jinping has called for the introduction of “forceful” interest rate cuts as the Chinese president battles to kickstart the stuttering economy. In a rare admission from China’s leadership, officials said the world’s second-largest economy was facing fresh turmoil as they vowed to inject greater levels of fiscal stimulus. It follows a series of measures laid out by the People’s …

Rate cuts set to boost market confidence
3 months, 3 weeks ago

Rate cuts set to boost market confidence

China Daily  

China's top financial regulators, in a move that went beyond market expectations, unveiled a potent combination of monetary easing measures on Tuesday, aimed at anchoring market confidence and underpinning economic recovery amid domestic and global headwinds, analysts said. Pan Gongsheng, governor of the People's Bank of China, the nation's central bank, said at a news conference on Tuesday that the …

China's central bank cuts bank reserve rates, pledges other moves to help the economy
3 months, 3 weeks ago

China's central bank cuts bank reserve rates, pledges other moves to help the economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Chinese central bank announced …

China's central bank cuts bank reserve rates, pledges other moves to help the economy
3 months, 3 weeks ago

China's central bank cuts bank reserve rates, pledges other moves to help the economy

Hindustan Times  

The Chinese central bank announced Tuesday a slew of measures aimed at reviving the sluggish economy, mainly by tackling a downturn in the property sector. China's central bank cuts bank reserve rates, pledges other moves to help the economy People’s Bank of China Gov. Pan Gongsheng said the reserve requirement for banks would be cut by 0.5 percentage points and …

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat
3 months, 3 weeks ago

Asian stocks follow Wall Street's rate-cut rally higher, as BOJ stands pat

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

Stock market today: Asian markets forge higher after Fed's first rate cut in over 4 years
3 months, 3 weeks ago

Stock market today: Asian markets forge higher after Fed's first rate cut in over 4 years

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Asian markets forged higher on …

More policy support to bolster growth expected
3 months, 4 weeks ago

More policy support to bolster growth expected

China Daily  

A robot operates equipment on the assembly line of an automaker in Xi'an, Shaanxi province. YUAN JINGZHI/FOR CHINA DAILY China is likely to gradually introduce new policies to bolster quality-oriented growth in the near term, as the latest indicators suggest the economy is still feeling the pinch of lackluster demand and low confidence among investors and consumers, analysts said. The …

Keep eye on global interest rate cuts for market moves
4 months ago

Keep eye on global interest rate cuts for market moves

New Indian Express  

Indian markets are hitting new highs and defying the ‘September effect’, considered the worst month for global stock markets. The sharp rally driven by banking, IT and auto stocks gained strength from a host of factors including interest rate cuts in the US, China and Europe. A bigger cut would confirm the worst fears of a hard landing for the …

Dollar struggles to find footing on rising bets of outsized Fed cut
4 months, 1 week ago

Dollar struggles to find footing on rising bets of outsized Fed cut

The Hindu  

The dollar stayed on the back foot on Thursday as renewed concerns over the U.S. economy's growth outlook bolstered expectations of a supersized rate cut from the Federal Reserve this month. Global markets have been on edge and stocks, in particular, have been badly bruised after softer-than-expected U.S. data this week reignited concerns that the growth outlook of the world's …

PBOC hints at further cuts in the reserve requirement ratio
4 months, 1 week ago

PBOC hints at further cuts in the reserve requirement ratio

China Daily  

The financial district of Pudong New Area. China will intensify counter-cyclical monetary measures at the aggregate level, central bank officials said on Thursday, implying room for further reductions in the reserve requirement ratio. Zou Lan, head of the Monetary Policy Department of the People's Bank of China, the country's central bank, said that the current average RRR of financial institutions …

Policy talk heats up on mixed factory data
4 months, 1 week ago

Policy talk heats up on mixed factory data

China Daily  

An employee works on the production line of a combine harvester manufacturer in Qingzhou, Shandong province. WANG JILIN/FOR CHINA DAILY China's manufacturing data put up a mixed performance in August, thus increasing the necessity of launching additional macroeconomic policy support measures to ensure the achievement of the country's annual growth target, economists and analysts said. The Caixin China General Manufacturing …

China may keep RMB stable if Fed cuts rates
4 months, 2 weeks ago

China may keep RMB stable if Fed cuts rates

China Daily  

A woman shows banknotes and coins included in the 2019 edition of the fifth series of the renminbi. With the United States appearing to be poised for interest rate cuts starting September, Chinese policymakers should strengthen monitoring of capital flows and prepare contingency plans against any potential sharp renminbi appreciation, analysts said. Stephen Jen, chief executive of British hedge fund …

Big banks cut deposit rates to strengthen sector stability
5 months, 2 weeks ago

Big banks cut deposit rates to strengthen sector stability

China Daily  

This file photo shows a worker counting Chinese currency at a bank in Lianyungang, East China's Jiangsu province. Several major Chinese commercial banks cut deposit rates on Thursday, signaling a new round of deposit rate cuts that could pave the way for further reductions in policy benchmarks of lending rates to bolster economic growth, market analysts said. The LPR reduction …

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program
5 months, 3 weeks ago

China cuts 1-year benchmark rate and doubles subsidies for EVs in its ‘cash for clunkers’ program

Associated Press  

BANGKOK — China ratcheted up its effort to reinvigorate its slowing economy Thursday by unexpectedly cutting a key policy rate and also doubling subsidies for electric vehicles bought to replace older cars. The People’s Bank of China said it cut its lending rate for one-year medium term policy loans by 20 basis points to 2.3%. Major state-run banks cut deposit …

Major Chinese banks cut deposit rates
5 months, 3 weeks ago

Major Chinese banks cut deposit rates

China Daily  

China's six largest State-owned banks announced a reduction in deposit interest rates on Thursday by 20 basis points at most, the Beijing News reported. The three-month, six-month and one-year deposit rates were cut by 10 basis points to 1.05, 1.25 and 1.35 percent, respectively, according to the official deposit interest rates released by the Industrial and Commercial Bank of China, …

Major Chinese banks cut deposit rates
5 months, 3 weeks ago

Major Chinese banks cut deposit rates

China Daily  

This file photo shows a worker counting Chinese currency at a bank in Lianyungang, East China's Jiangsu province. China's six largest State-owned banks announced a reduction in deposit interest rates on Thursday by 20 basis points at most, the Beijing News reported. The three-month, six-month and one-year deposit rates were cut by 10 basis points to 1.05, 1.25 and 1.35 …

China cuts to key rates to in a bid to support economy
5 months, 3 weeks ago

China cuts to key rates to in a bid to support economy

The Hindu  

China surprised markets by lowering a key short-term policy rate and its benchmark lending rates on July 22, in an attempt to boost growth in the world's second-largest economy. The People's Bank of China said on July 22 it would cut the seven-day reverse repo rate to 1.7% from 1.8%, and would also improve the mechanism of open market operations. …

Flexible H2 money policy foreseen
5 months, 4 weeks ago

Flexible H2 money policy foreseen

China Daily  

A woman shows banknotes and coins included in the 2019 edition of the fifth series of the renminbi. China's monetary policy is likely to stay accommodative in the second half of the year as the latest economic and financial indicators point to the need for further policy support while growing expectations of US interest rate cuts create more room for …

Two new tools to guide interest rates
6 months ago

Two new tools to guide interest rates

China Daily  

A pedestrian walks past the headquarters of the PBOC in Beijing. JIANG QIMING/CHINA NEWS SERVICE The People's Bank of China, the country's central bank, has launched a pair of new tools to better guide market interest rates and ensure bond market stability, reinforcing its efforts to build a modern monetary policy system, experts said. This move came after Pan Gongsheng, …

RRR cut buzz gathers steam
9 months, 3 weeks ago

RRR cut buzz gathers steam

China Daily  

A pedestrian walks past the headquarters of the PBOC in Beijing. JIANG QIMING/CHINA NEWS SERVICE Lukewarm financing demand and the upcoming issuance of a large amount of treasury bonds may necessitate a cut in the reserve requirement ratio in the second quarter of the year as the external financial conditions are set to improve, experts said. Xuan's remarks reinforced expectations …

Wall Street rallies to records as Federal Reserve sees rate cuts for 2024
9 months, 3 weeks ago

Wall Street rallies to records as Federal Reserve sees rate cuts for 2024

Associated Press  

TOKYO — Asian benchmarks were mostly higher on Thursday after U.S. stocks rallied to records following the Federal Reserve’s i ndication that it expects to deliver interest rate cuts later this year. Some of Wall Street’s nervousness coming into the day washed away after the Fed released a survey of its policy makers, which showed the median still expects the …

Experts: CPI data points to recovery in demand
10 months ago

Experts: CPI data points to recovery in demand

China Daily  

A customer buys fruit at a shop in Shenyang, Liaoning province on Jan 25, 2024. They also said they expect the government to step up both fiscal and monetary policy support, including more fiscal spending to bolster domestic demand alongside further reserve requirement ratio reductions and policy rate cuts. China's producer price index, which gauges factory-gate prices, dropped 2.7 percent …

Experts: CPI data points to recovery in demand
10 months ago

Experts: CPI data points to recovery in demand

China Daily  

A customer buys fruit at a shop in Shenyang, Liaoning province on Jan 25, 2024. They also said they expect the government to step up both fiscal and monetary policy support, including more fiscal spending to bolster domestic demand alongside further reserve requirement ratio reductions and policy rate cuts. China's producer price index, which gauges factory-gate prices, dropped 2.7 percent …

Federal Reserve officials caution against cutting US interest rates too soon or too much
10 months, 3 weeks ago

Federal Reserve officials caution against cutting US interest rates too soon or too much

Associated Press  

WASHINGTON — Several Federal Reserve policymakers warned Thursday against cutting U.S. interest rates too soon or by too much in the wake of recent data showing inflation stayed unexpectedly high in January. Christopher Waller, a member of the Fed’s influential board of governors, titled a written copy of remarks he delivered Thursday, “What’s the rush?” “We need to verify that …

Significant interest rate cuts, just what the market needs
10 months, 3 weeks ago

Significant interest rate cuts, just what the market needs

China Daily  

This file photo shows a worker counting Chinese currency at a bank in Lianyungang, East China's Jiangsu province. China's central bank announced the largest cut to a benchmark mortgage rate in recent years on Tuesday, lowering the over-five-year loan prime rate by 25 basis points to 3.95 percent. In 2023, the central bank introduced a series of rate cuts, lowering …

China implements biggest LPR cut on record
10 months, 3 weeks ago

China implements biggest LPR cut on record

China Daily  

By Zhou Lanxu| chinadaily.com.cn| Updated :2024-02-21 China implemented the biggest cut on record to a mortgage rate benchmark on Tuesday, indicating monetary policymakers' dedication to bolstering economic revival, with additional cuts to a key policy rate likely on the horizon, experts said. With Tuesday's cut underscoring policymakers' ramped-up efforts to address the housing market weakness and stabilize the broader economy, …

China cuts key interest rate in the latest move to boost its ailing property sector
10 months, 3 weeks ago

China cuts key interest rate in the latest move to boost its ailing property sector

Associated Press  

BANGKOK — China’s central bank announced Tuesday that it cut its 5-year loan prime rate while leaving its 1-year rate unchanged in the latest move to ease pressures on the ailing property market. But coupled with efforts to provide increased credit support to developers, today’s cut should help to reduce pressure on the property sector somewhat,” Julian Evans-Pritchard of Capital …

Federal Reserve signals that interest rate cuts aren’t imminent, leaving them unchanged for now
11 months, 2 weeks ago

Federal Reserve signals that interest rate cuts aren’t imminent, leaving them unchanged for now

LA Times  

Interest rate cuts are coming. “I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting” to start cutting rates, Powell said at his news conference. The change in the Fed’s stance Wednesday comes as the economy is showing surprising durability after a series of 11 rate hikes helped drastically …

Stock market today: Asia markets weaker ahead of Fed decision; China economic data disappoint
11 months, 2 weeks ago

Stock market today: Asia markets weaker ahead of Fed decision; China economic data disappoint

Associated Press  

HONG KONG — Asian stocks mostly declined Wednesday as markets awaited a decision on interest rates by the Federal Reserve, while China reported manufacturing contracted in January for a fourth straight month. Australia’s S&P/ASX 200 added 0.8% to 7,657.20 after a survey showed Australia’s inflation rate fell to a two-year low in the December quarter, with the consumer price index …

China eases banks' reserve requirement to cement economic recovery
11 months, 2 weeks ago

China eases banks' reserve requirement to cement economic recovery

China Daily  

A cashier counts renminbi notes in a bank in Haian, Jiangsu province. BEIJING - China's central bank will lower the amount of reserve requirement that financial institutions have to set aside, amid efforts to support economic recovery and confidence. Reserve requirement ratio for financial institutions will be cut by 0.5 percentage points from Feb 5, which will provide 1 trillion …

Financial markets are jonesing for interest rate cuts. Not so fast, says the European Central Bank
11 months, 3 weeks ago

Financial markets are jonesing for interest rate cuts. Not so fast, says the European Central Bank

Associated Press  

FRANKFURT, Germany — European Central Bank President Christine Lagarde pushed back Thursday against market expectations for quick interest rate cuts even as Europe’s economy sputters and financial markets froth in hopes of cheaper credit that would boost business activity and stock prices. was that it was premature to discuss rate cuts.” Financial markets have been expecting a cut as early …

China goes for cash infusion in economy, cuts cash reserve ratio
11 months, 3 weeks ago

China goes for cash infusion in economy, cuts cash reserve ratio

Firstpost  

China’s central bank is set to reduce the required reserve ratio for banks from February, marking the first such cut for the year. People’s Bank of China Governor Pan Gongsheng said on Wednesday at a press conference in Beijing that the bank would cut the reserve requirement ratio for all banks by 50 basis points, adding the move would free …

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