cover of episode UBS On-Air: Paul Donovan Daily Audio 'Inevitable, but what does it change?'

UBS On-Air: Paul Donovan Daily Audio 'Inevitable, but what does it change?'

2024/7/22
logo of podcast UBS On-Air: Market Moves

UBS On-Air: Market Moves

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Shownotes Transcript

The decision of the People’s Bank of China to cut rates by 0.1 percentage point was perhaps inevitable—even on official data, the domestic economy is lethargic. Does a small change in borrowing costs really alter anything? Arguably, China is not constrained by the cost of credit. This is a signal of policymakers’ concerns over economic growth, and perhaps represents a downpayment on future action.