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The PBoC’s likely move estimate is a 25 basis point RRR reduction for all banks


A senior economist at the Postal Savings Bank of China says he thinks the People’s Bank of China could cut the RRR for all banks by 0.25 percentage points

  • Reducing the amount of cash banks must hold in reserve is expected to free up about 550 billion yuan ($77 billion) of long-term liquidity.
  • “By using the RRR cuts, China will not only encourage banks to strengthen their support for the real economy, but also reduce their borrowing costs, helping banks to give up part of their profits to support the economy. The long-term funds released by the reduction is also conducive for banks to provide long-term financing for the economy,”

Additionally, a senior researcher from Zhixin Investment Research Institute, said COVID-19[feminine]

Covid-19

Covid-19 or novel coronavirus is a pandemic that caused wide-ranging economic turmoil and volatility in financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then , the virus has spread globally. , infecting millions of people worldwide. The virus has been extremely controversial, especially in the United States, which became highly politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern times, the most recent example being the 1918 flu epidemic. Financial markets and global economies were utterly unprepared for the scale of the virus, causing mass shutdowns, unemployment and other hardship in an effort to contain and mitigate the virus. How has Covid-19 affected the markets? Virtually every asset has been impacted in some way by Covid-19. At first, financial markets and equities crashed, with the nadir coming in March 2020 in the US and Europe. Widespread shutdowns have led to economic paralysis, prompting stimulus packages to help keep national economies functioning. The result has been a depreciation of currencies such as the US dollar, with the Federal Reserve printing billions of dollars to mitigate economic losses. Forex markets have since experienced historic levels of volatility, leading some to classify the Covid-19 pandemic as a Black Swan event. Financial markets have mostly rebounded in 2020 at the time of writing, although many headwinds remain in terms of economic recovery. Currently, unemployment rates and other indicators remain problematic and, when coupled with rising infection rates, portend further monetary policy action or stimulus in Europe and the United States. As of this writing, there is no vaccine for Covid-19, although several companies such as Pfizer and Moderna are close to producing a viable vaccine.

Covid-19 or novel coronavirus is a pandemic that caused wide-ranging economic turmoil and volatility in financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then , the virus has spread globally. , infecting millions of people worldwide. The virus has been extremely controversial, especially in the United States, which became highly politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern times, the most recent example being the 1918 flu epidemic. Financial markets and global economies were utterly unprepared for the scale of the virus, causing mass shutdowns, unemployment and other hardship in an effort to contain and mitigate the virus. How has Covid-19 affected the markets? Virtually every asset has been impacted in some way by Covid-19. At first, financial markets and equities crashed, with the nadir coming in March 2020 in the US and Europe. Widespread shutdowns have led to economic paralysis, prompting stimulus packages to help keep national economies functioning. The result has been a depreciation of currencies such as the US dollar, with the Federal Reserve printing billions of dollars to mitigate economic losses. Forex markets have since experienced historic levels of volatility, leading some to classify the Covid-19 pandemic as a Black Swan event. Financial markets have mostly rebounded in 2020 at the time of writing, although many headwinds remain in terms of economic recovery. Currently, unemployment rates and other indicators remain problematic and, when coupled with rising infection rates, portend further monetary policy action or stimulus in Europe and the United States. As of this writing, there is no vaccine for Covid-19, although several companies such as Pfizer and Moderna are close to producing a viable vaccine.
Read this term cases resurfaced in a number of Chinese cities this month, which affected the recovery of the real economy to some extent.

  • “As the demand is still insufficient and Market sentiment

The information arrives via China. org.

The momentum seems to be building up to an inevitable cut.

cnbctv18-forexlive

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