China: More Rate Cuts Are Coming

🇨🇳 🇨🇳 What Bloomberg Economics Says…“China has more monetary stimulus in the pipeline…The surprisingly deep cut in the five-year loan prime rate Tuesday showed banks had room to lower borrowing costs. Our analysis — using term spreads in corporate bonds as a reference — shows they still have more space — as much as 20 basis points — even if the PBOC stands pat.”— Chang Shu and David Qu, economists
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