Homepage
PR Newswire
25-11-2014, 01:20 PM
Further interest rate cuts expected: Chinese bank
PETER CAI NOVEMBER 25, 2014 1:00PM
One of China’s leading domestic investment banks, China International Capital Corp, predicts the central bank will cut interest rates further or lower the capital reserve ratio to address the problem of high funding costs for companies.
According to a note released by the bank, the latest weak HSBC PMI number suggests the country’s manufacturing sector is still under pressure and past policy remedies have not been effective. The best way to address the problem is to cut interest rate according to the report.
The bank estimates the latest move from the central bank would save 360 billion yuan in terms of cost of funding for companies, which amounts to 0.6 per cent of GDP.
PETER CAI NOVEMBER 25, 2014 1:00PM
One of China’s leading domestic investment banks, China International Capital Corp, predicts the central bank will cut interest rates further or lower the capital reserve ratio to address the problem of high funding costs for companies.
According to a note released by the bank, the latest weak HSBC PMI number suggests the country’s manufacturing sector is still under pressure and past policy remedies have not been effective. The best way to address the problem is to cut interest rate according to the report.
The bank estimates the latest move from the central bank would save 360 billion yuan in terms of cost of funding for companies, which amounts to 0.6 per cent of GDP.