According to Reuters sources
- Benchmark interest rate cut not imminent despite cooling inflation, stronger yuan
- Benchmark interest rate cut remains a last resort if growth slows sharply
- Trade deal with US would also reduce chance of said cut
The source is reporting that China will not be seeking key interest rate changes unless there is a significant slowdown in economic growth, but will instead pursue more market-based rate cuts via the RRR. That comes as no surprise considering the fact that the PBOC has already slashed the RRR by 100 bps in January.
