RMB under pressure after Beijing cuts rates; more easing expected

Singapore

MORE monetary easing by Beijing is on the cards, even as it cut interest rates for the second time in just over three months to support a sluggish economy and ward off deflation risks (INFOGRAPHIC: Reactions to China rate cut).

While this bodes well for the property market and highly-leveraged state-owned enterprises (SOEs), the rate-cut cycle will further weaken the renminbi. But economists believe a sharp drop in the redback is unlikely.

Frederic Neumann, HSBC's co-head of Asian Econo…