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China | Putting the final piece into the new monetary policy framework: timing is the key

Published on Monday, April 1, 2019

China | Putting the final piece into the new monetary policy framework: timing is the key

China’s authorities recently raised their rhetoric of completing the new monetary policy framework. Many analysts view it as a signal of lifting the benchmark policy rates. We, however, do not envisage that the removal of benchmark policy rates will happen this year given growth headwinds and the lack of alternatives. Instead, we expect two cuts in benchmark policy rates.

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