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

UBS in response to the stimulus signals that came from China's Communist Party Politburo:

• China pledge to step up policy support underpins rally in oil and Chinese equities

UBS are expecting the People’s Bank of China to potentially cutt policy rates by 10 basis points in H2 of this year:

• also expect the PBOC cut the reserve requirement ratio by 25bp
• and to inject more liquidity into the banking system via open market operations

UBS forecast all this to help boost year-on-year credit growth to 10% by Q4.

Shanghai Composite higher yesterday