Beijing will unveil plans to revive growth at a press conference held by central bank governor Pan Gongsheng this morning, Bloomberg reports. The briefing comes hot on the heels of the People’s Bank of China (PBOC)’s short-term policy rate cut announcement, which yesterday fuelled speculation that a more comprehensive stimulus package could be on the cards.
Speaking at an event in Macao on Monday, Pan reportedly vowed to “enhance the intensity of monetary policy adjustment.” Authorities recently signalled they were preparing additional policies to boost financial support for economic development, Bloomberg said.
August was a disappointing month for the country in terms of economic performance, raising concerns that China could miss its 2024 target of around 5 percent growth. President and chief economist at Hong Kong-headquartered Pinpoint Asset Management, Zhiwei Zhang, said that today’s briefing would give regulators a chance to “shed light on their policy stance.”
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“I do expect the PBOC to cut the 7-day reverse repo rate [the rate on commercial banks’ deposits with the central bank] as well as the reserve requirement ratio in the coming months,” Zhiwei told Bloomberg.
Yesterday, the bank lowered its 14-day reverse repurchase rate from 1.95 percent to 1.85 percent, catching up with reductions initiated in July. But ANZ Chief Greater China Economist Raymond Yeung said that “a bigger package is needed”.
“Other policy measures in the tool box such as [reserve ratio requirements] RRR cut, [medium-term lending facility] MLF cut and mortgage rate cut will likely be announced,” he said to Bloomberg.
Pan’s briefing is scheduled for 9 am (20 minutes before the PBOC’s daily announcement on its short-term policy loans and their costs). He will be joined by the minister for the National Financial Regulatory Administration, Li Yunze, and the chairman of the China Securities Regulatory Commission, Wu Qing.
