0159 GMT - The Chinese central bank's further easing of monetary policy earlier Tuesday may provide only marginal benefits, Capital Economics' Zichun Huang says in commentary. "Modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity," the China economist says. The People's Bank of China said earlier that the one-year and five-year loan prime rates were lowered by 10 basis points. Also, a rate reduction had been widely expected after the PBOC's guidance at a press conference earlier this month, the economist adds. Capital Economics forecasts an additional 40 bps of rate cuts by end-2025. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
May 19, 2025 21:59 ET (01:59 GMT)
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