Fed easing likely to prompt China rate cut

Follow the Fed: A pedestrian walking past the People’s Bank of China (PBoC) headquarters in Beijing. Market watchers expect the PBoC to follow any US rate cut by lowering its key short-term money market rates. — Bloomberg

SHANGHAI: China’s central bank could cut its benchmark policy rate for the first time in four years if the US Federal Reserve delivers a widely expected cut in late July, analysts say, as Chinese policymakers step up support for the slowing economy.

Market watchers, however, believe the People’s Bank of China (PBoC) is more likely to follow any US rate cut by lowering its key short-term money market rates.