I posted on the strong signal of a cut coming out China earlier:
Goldman Sachs tipping the same:
- Premier Li held the State Council meeting today (April 13th) and required policymakers to roll out measures to support consumption.
- He also hinted at a potential RRR cut and required financial institutions to further lower funding costs for the real economy.
- We expect the PBOC to deliver a 50bp RRR cut and potentially also an interest rate cut in the next few days.
RRR is Reserve Requirement Ratio, the amount of cash that banks must hold as reserves. A cut to the RRR frees funds for lending into the system.