Research Detail
| 2024/09/27 / Erste Group Research |
China's central bank eases monetary policy China's central bank, the People's Bank of China (PBoC), surprised the financial markets this week with a further easing of its monetary policy. The key interest rate was lowered by 0.2% to 1.5%. In addition, the capital requirements for banks were lowered by 0.5%, giving the Chinese banking sector greater scope for new lending. With its easing of monetary policy, the PBoC is following the US Federal Reserve, which began its cycle of interest rate cuts last week. The ECB already started to cut its key interest rates in June. In our view, the global cycle of interest rate cuts that has begun has increased the likelihood that the propensity to invest in the most important economic areas could pick up in 2025. Next week (October 1), the first estimate of inflation in the Eurozone in September will be published. Due to base effects, energy prices are likely to dampen inflation even more in September. We therefore expect inflation to fall again to 2% y/y or even lower. |
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General information
| Author | Erste Group Research |
| Date | 2024/09/27 |
| Language |  |
| Product name | Week ahead |
| Topic in focus | Macro/ Fixed income |
| Economy in focus | Eurozone, United States |
| Currency in focus | Euro, US Dollar |
| Sector in focus | - |
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