“Now is a good time for the People's Bank of China (PBOC) to cut interest rates,” China Daily reports, citing a senior researcher at the Chinese Academy of Social Sciences (CASS).
Key quotes
“Domestic demand remains insufficient.”
“Monetary policy of the United States has not entered a tightening cycle.”
"Domestic consumption remains relatively weak compared with the pre-COVID level and growth in the labor market has come to a standstill.”
In another editorial, China Daily said that there is no need for the country’s central bank to add in Open Market Operation (OMO) funds in the short term.
Market reaction
USD/CNY was last seen trading at 6.4820, almost unchanged on the day.
