Barclays noted that the highly anticipated stimulus may disappoint if the tariff truce holds. The bank expects the People’s Bank of China (PBOC) to deliver a small cut in the policy rate and LPR, along with a reduction in the reserve requirement ratio (RRR) in Q4.
Societe Generale highlighted that the next key domestic policy event is the upcoming fourth plenum in October, where policymakers will review proposals of the 15th Five-Year Plan. The bank also sees the need for interest rate and RRR cuts in Q4, anticipating a 10-basis-point and 50-basis-point adjustment, respectively.
(Disclaimer: This slideshow has been sourced from Reuters)