China central bank steps up easing tempo as factory activity shrinks

0
599

Containers are seen at a port of Shanghai Free Trade Zone

BY PETE SWEENEY

Weakness in China’s vast manufacturing sector, aggravated by high real borrowing costs and weak demand, appears to have driven the central bank to accelerate the pace of monetary easing to ward off deflation in the world’s second-largest economy.
Cuts to benchmark lending and deposit rates, announced by the People’s Bank of China (PBOC) on Saturday evening, pre-empted official data released on Sunday that showed a second consecutive month of shrinking manufacturing activity for February.
While economists had been predicting further easing to support the struggling economy, some were surprised that the PBOC made its move just days before China’s national legislature will meet to set the official economic growth target for 2015.

“This rate cut signals policymakers’ willingness to take further action to ease financing conditions in an effort to maintain stable growth,” wrote Nomura analysts’ in research note that said the cut had come sooner than predicted. “It also suggests that growth may have slowed sharper than we expected.”
“Read the Full Article at www.reuters.com >>>>”

ATTENTION READERS
Due to the nature of independent content, VT cannot guarantee content validity.
We ask you to Read Our Content Policy so a clear comprehension of VT's independent non-censored media is understood and given its proper place in the world of news, opinion and media.

All content is owned by author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners or technicians. Some content may be satirical in nature. All images within are full responsibility of author and NOT VT.

About VT - Read Full Policy Notice - Comment Policy