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Chinese economic growth could decelerate in H1 2015 – DB

FXStreet (Edinburgh) - In the view of economists at Deutsche Bank, the Chinese economy could expand at a slower pace into the first quarter of the present year.

Key Quotes

“Growth momentum remains weak as property investment growth continues to slow”.

“We expect growth to trend down in Q4 2014 and H1 2015. In Q1 2015 GDP growth may drop to 6.8% yoy”.

“The policy easing cycle has started. We expect the government to cut benchmark interest rates further by 25bp in Q2 and another 25bp in Q3 2015 and cut the RRR by a cumulative 100bps by mid- 2015 to stabilize the economy”.

“We expect growth to pick up slightly in H2 2015, and full year growth to reach 7%”.

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