Further easing by the PBOC expected - DB

FXStreet (Bali) - According to Deutsche Bank's Chinese Chief Economist, Zhiwei Zhang, Ph.D, more easing measures by the PBOC are expected following Wednesday's cut to the reserve requirement ratio (RRR) by 50bp.

Key Quotes

"We expect more easing measures to come. We continue to expect another RRR cut of 50bp in Q2. We also continue to expect two interest rate cuts, but we revise our call on timing, and expect the two cuts to happen in March and Q2, instead of Q2 and Q3. We expect the interest rate cuts to be symmetric, with 25bp each time for both benchmark deposit and lending rate."