Fitch pushes back China rate cut expectations to next year as Fed holds interest rates steady
Publishing timestamp: 2024-06-19 06:11:53
Summary
Fitch no longer expects China to cut its policy rate this year, delaying reduction to next year due to high interest rates by the U.S. Federal Reserve. China is forecasted to keep its one-year MLF unchanged at 2.5% this year and cut it to 2.25% next year. Fed's policy has kept the U.S. dollar strong against the Chinese yuan, leading to concerns about capital outflows and bank profitability. PBOC Governor Pan Gongsheng stated that monetary policy would remain supportive.
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Keywords: market insider, us dollar/chinese renminbi fx spot rate, stock markets, business news, markets,