Markets Hoping for PBOC to Continue Stimulus Measures to Boost Chinese Economy - Forex News by FX Leaders

Markets Hoping for PBOC to Continue Stimulus Measures to Boost Chinese Economy

Posted Thursday, May 9, 2019 by
Arslan Butt • 1 min read

Amid concerns that the US-China trade war could be escalating, economists are expecting China’s central bank, PBOC, to inject more measures to ease the monetary policy and support the economy.

As Chinese economic data started showing signs of recovery recently, markets were wary that the government will go slow with its fiscal stimulus package to support growth. However, now that Trump has announced a tariff hike on Chinese imports, a fresh bout of measures to boost growth looks to be in the offing.

On its part, the People’s Bank of China (PBOC) confirmed its plans on Monday to cut reserve requirement ratios (RRR) for some banks in the country. Net new loans in China have reduced to 1.02 trillion yuan in April, below expectations of 1.2 billion yuan and well below March’s 1.69 trillion yuan.

Total social financing (TSF), a broad measure of credit and liquidity, also came down to 10.4 percent in March 2019. The figure had touched 10.7 percent during the same period last year.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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