China's Central Bank Unveils Most Aggressive Stimulus Since Pandemic
On Tuesday, China's central bank unveiled its biggest stimulus since the pandemic: to pull the economy out of its deflationary funk and back towards the government's growth target.
On Tuesday, China's central bank unveiled its biggest stimulus since the pandemic: to pull the economy out of its deflationary funk and back towards the government's growth target. However, analysts warned that more fiscal help was vital to hit these goals.
The broader-than-expected package offering more funding and interest rate cuts marks the latest attempt by policymakers to restore confidence in the world's second-largest economy after a slew of disappointing data raised concerns of a prolonged structural slowdown.
Chinese stocks and bonds rallied, and Asian stocks hit 2-½ year highs as Governor Pan Gongsheng announced plans to lower borrowing costs, inject more funds into the economy, and ease households' mortgage repayment burden. The yuan currency jumped to a 16-month high against the dollar. In rare forward-looking remarks, Pan said that depending on the market liquidity situation later this year, the RRR may be further lowered by 0.25-0.5 percentage points.
The PBOC will also cut the seven-day reverse repo rate, its new benchmark, by 0.2 percentage points to 1.5%, as well as other interest rates.
UK Economy to Grow Faster than Japan, Italy and Germany This Year, says OECD
The global economy is “turning a corner”, according to the Organisation for Economic Cooperation and Development, which has upgraded the UK’s growth forecast for this year to faster than that of Japan, Italy and Germany.
What Will Happen to Nio over the Next Three Years?
From 2023 to 2026, analysts expect Nio's revenue to grow at a CAGR of 27% to 115 billion yuan ($16.4 billion) as it narrows its annual net loss to 9.38 billion yuan ($1.34 billion).
