Skip to main content

Case for rate cuts fades as financial stability concerns return

Much of the focus in the coming days will be on the senior government appointments that will be confirmed at the National People’s Congress that starts in just over a week, including for the PBOC.  We now think the new leadership there is unlikely to see a case for further rate cuts as the economy appears already to be recovering well and new financial stability concerns have emerged linked to the pre-payment of mortgages.

Global Drop-In (28th Feb.): What’s the long-term outlook for productivity and economic growth? Which countries will succeed and which will falter in the coming decades? How will increasing US-China competition shape economic and market outcomes? Join this special briefing on the long run outlook on Tuesday, 28th February at 10:00 EST/15:00 GMT. Register Now.  

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access