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6 Feb 2015
China might see a total of 150bp RRR cut in 2015 – ING
FXStreet (Barcelona) - Prakash Sakpal of ING, gives the forecast for Chinese key policy interest rates, RRR and the 10-yr bond yields.
Key Quotes
“We agree with the Bloomberg consensus forecast of one more 25bp PBOC policy rate cut by 2Q15.”
“We forecast a cumulative 150bp RRR cut in the rest of the year to 18.0%.”
“The 7-day repo rate is off 38bp from its level before the latest RRR cut to 4.22% currently.”
“We expect the 7-day repo to retrace to the 3.4% average level for mid- February to November 2014 once the seasonal liquidity demand eases.”
“We are reviewing our yearend 3.7% 10-year bond yield forecast for downward revision (latest 3.43%, Bloomberg consensus 3.54%).”
Key Quotes
“We agree with the Bloomberg consensus forecast of one more 25bp PBOC policy rate cut by 2Q15.”
“We forecast a cumulative 150bp RRR cut in the rest of the year to 18.0%.”
“The 7-day repo rate is off 38bp from its level before the latest RRR cut to 4.22% currently.”
“We expect the 7-day repo to retrace to the 3.4% average level for mid- February to November 2014 once the seasonal liquidity demand eases.”
“We are reviewing our yearend 3.7% 10-year bond yield forecast for downward revision (latest 3.43%, Bloomberg consensus 3.54%).”