Earlier today, Bloomberg reported that Chian has convened ‘urgent’ meetings on the economy with business leaders on how to revitalize the economy.
Meeting attendees characterized “an “unusually urgent” tone in the meetings, which were described by “people present”.
There was a consensus among high-level government officials and some 10 people present at one meeting about two weeks ago that more and better-coordinated monetary and fiscal stimulus is needed, according to one participant. All those present shared pressing concerns over the ambiguity of the timing and form of any stimulus, the person said
This report is helping to underscore a bid in commodities, risk assets and the Australian dollar today.
There was already an expectation that the PBOC would cut the rate on the 1 year Medium-term Lending Facility (MLF) tomorrow, Thursday, 15 June 2023. Then on 20 June, they could also cut the one-year or five-year Loan Prime Rate (LPR).
The question beyond that is whether this is a one-off or part of a cycle on the monetary and fiscal side. The report says “officials are discussing a broad package of stimulus measures, including for the faltering property market” that could come as soon as Friday.