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23rd Jan 2024 20:49China+, Daily Monitor

  • The PBoC yesterday announced an RRR cut; we see this as mainly to facilitate government-bond issuance.
  • Governor Pan said RRR adjustments would drive down the LPR; a Q1 cut still seems likely.
  • The big picture: China is relying on fiscal support to prop up growth, 2024 is likely to see token rate cuts.

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Keywords for: 25 January 2024 China+ Monitor

Pantheon Macro, Pantheon Macroeconomics, independent macro research, independent research, ian shepherdson, economic intelligence