UBS in response to the stimulus signals that came from China’s Communist Party Politburo:
UBS are expecting the People’s Bank of China to potentially cutt policy rates by 10 basis points in H2 of this year:
- also expect the PBOC cut the reserve requirement ratio by 25bp
- and to inject more liquidity into the banking system via open market operations
UBS forecast all this to help boost year-on-year credit growth to 10% by Q4.
Shanghai Composite higher yesterday