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China seen reducing interest rates again after first cut since 2012

PBOC will act to shore up demand as weakest growth since 1990 is likely: economists

Beijing

CHINA is poised to deliver deeper interest rate cuts after last week's unexpected decision to reduce borrowing costs for the first time since 2012.

With the world's second-largest economy on track to record its weakest annual growth since 1990, economists at JPMorgan Chase & Co, Barclays plc and UBS AG all said the People's Bank of China (PBOC) will act again to shore up demand.

Global stocks, oil and metal prices all rose as China sided with the euro-area and Japan in delivering fresh stimulus. Risk the nation will undershoot its official growth target of about 7.5 per cent this year, slowing inflation and elevated funding costs suggest more action to come.

The announcement signals a "policy...

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