China\u2019s central bank appears increasingly likely to ease its monetary stance in the fourth quarter, according to Goldman Sachs, as economic momentum slows and policymakers face mounting pressure to support growth.<\/p>\n
The forecast includes a 10-basis-point policy rate cut and a 50-basis-point reduction in the reserve requirement ratio, which could come as year-on-year growth slows sharply towards 4 per cent from a high base last year, a note released on Saturday said.<\/p>\n
\u201cBut the data-dependent nature of PBOC decision-making leaves open the risk of no action if full-year growth stays on track for the \u2018around 5 per cent\u2019 target,\u201d analysts said in the note.<\/p>\n
The projection followed the central bank\u2019s third-quarter Monetary Policy Committee meeting held on Tuesday, when officials maintained a dovish bias but offered few new signals, aligning with the second-quarter report that suggested a limited appetite for near-term easing.<\/p>\n
\u201cWe need to better implement an appropriately loose monetary policy, strengthen countercyclical adjustments, and better leverage both the aggregate and structural functions of monetary policy tools,\u201d the People\u2019s Bank of China said in a meeting note posted on Friday.<\/p>\n
However, Goldman Sachs analysts noted a subtle shift in tone: the PBOC replaced its previous description of the economy as \u201cshowing positive momentum\u201d with \u201cmaking strides while maintaining stability\u201d \u2013 a phrase last used in the first quarter, suggesting a more cautious outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s central bank appears increasingly likely to ease its monetary stance in the fourth quarter, according to Goldman…\n","protected":false},"author":2,"featured_media":189510,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[550,28,144,110760,110766,6387,23940,110764,110761,110763,101,28222,86896,9341,9340,110765,110762,46542],"class_list":["post-189509","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-business","tag-china","tag-china-monetary-policy","tag-chinas-gdp-growth","tag-chinese-economy","tag-deflationary-pressures","tag-dovish-bias","tag-dovish-outlook","tag-economic-momentum","tag-economy","tag-goldman-sachs","tag-monetary-policy-committee","tag-pboc","tag-peoples-bank-of-china","tag-politburo-meeting","tag-reserve-requirement-ratio","tag-sp-global"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/189509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=189509"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/189509\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/189510"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=189509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=189509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=189509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}