FX Empire (October 26)
2024/ 10/ 27 by jd in Global News
The IMF’s latest forecast counteracted any hope attached to China’s stimulus policy. “Markets reacted positively” when the People’s Bank of China “cut 1-year and 5-year loan prime rates (LPR) by 25 basis points” since “lower borrowing costs could drive credit demand and consumption.” In contrast, “the IMF’s latest growth projections… called for caution,” with 2024 growth forecast for China lowered from 5.0% to 4.8%.” Moreover, the IMF pointed out that “Beijing’s maneuvers may not be enough to support an economic recovery.”
Tags: 25 bp, Borrowing costs, Caution, China, Consumption, Credit demand, Economic recovery, Forecast, Growth projections, IMF, Markets, PBOC, Rates, Reacted, Stimulus
