ICYMI – UBS expect China rate cuts, RRR cut, more cash injections in H2 2023

<p>UBS in response to the stimulus signals that came from China's Communist Party Politburo:</p><ul><li><a href="https://www.forexlive.com/news/china-pledge-to-step-up-policy-support-underpins-rally-in-oil-and-chinese-equities-20230724/" target="_self" rel="follow">China pledge to step up policy support underpins rally in oil and Chinese equities</a></li></ul><p>UBS are expecting the People’s Bank of China to potentially cutt policy rates by 10 basis points in H2 of this year:</p><ul><li>also expect the PBOC cut the reserve requirement ratio by 25bp</li><li>and to inject more liquidity into the banking system via open market operations</li></ul><p>UBS forecast all this to help boost year-on-year credit growth to 10% by Q4. </p><p>Shanghai Composite higher yesterday </p>

This article was written by Eamonn Sheridan at www.forexlive.com.