0321 GMT - China's low inflation, still weak domestic demand and the escalating tariff war are likely to push the PBOC toward more easing over the rest of the year, Barclays economists say in a research note. The need for monetary policy easing can be delayed but not denied, they say, adding that rising Fed rate cut expectations, ebbing yuan depreciation pressures and the rebound in Chinese government bond yields are creating room for the PBOC to ease. Barclays maintains its base case for 20 bps of policy rate cuts this year with a 10bp cut each in 2Q, and a further 50-100 bps of reserve requirement ratio cuts. (monica.gupta@wsj.com)
(END) Dow Jones Newswires
March 23, 2025 23:21 ET (03:21 GMT)
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