PBoC likely to cut key rate further as policy eases, says Fitch
PBoC may implement further cuts to its seven-day reverse repo (RR) rate in 2025, following a reduction to 1.4 per cent in May, according to Fitch Ratings. This aligns with its shift to a ‘moderately loose’ monetary stance. Fitch now considers the seven-day RR as China’s main policy rate. Although deep cuts are projected, easing could be constrained by recent US-China trade de-escalation.
PBoC may implement further cuts to its seven-day reverse repo (RR) rate in 2025, following a reduction to 1.4 per cent in May, according to Fitch Ratings.
This aligns with its shift to a ‘moderately loose’ monetary stance.
Fitch now considers the seven-day RR as China’s main policy rate.
Although deep cuts are projected, easing could be constrained by recent US-China trade de-escalation.
