2015-03-13

More Rate Cuts Coming in China

China likely to ease again if inflation falls - central bank adviser
China is likely to cut interest rates or reserve requirements again if consumer inflation drifts below 1 percent, a member of the central bank's monetary policy committee said, as he ruled out more support for the sagging Chinese property market.

Qian Yingyi said policymakers still needed to monitor the inflation data for March and April to judge if deflation pressures were deepening in the world's second-biggest economy.

Having seen China lower interest rate twice since November, and also cut the level of cash banks must hold as reserves last month, most investors assume that China will further loosen monetary policy in coming months to buoy an economy that is on course for its worst year in a quarter of a century.

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