China likely to cut its lending rates on January 21 — Nomura

<p>The US CPI report isn't the only big one this week.</p><p>China also releases its inflation data on January 11 and it will highlight the room the PBOC has to cut rates. The November CPI reading was -0.5% y/y and December is likely to be even lower as energy costs pass through.</p><p>That highlights just how much room that China has to lower rates. The PBOC meets on its benchmark loan prime rate on Monday Jan 21 and Nomura is out with a note saying a rate cut is 'quite likely'.</p><p>That will be welcome news for Chinese stocks, which have struggled badly this year after a poor year in 2023.</p>

This article was written by Adam Button at www.forexlive.com.