SYDNEY: China is expected to unveil efforts to cushion the economic blow from coronavirus, with the central bank set to keep liquidity ample and the government likely to step up spending.
Authorities will need to break their fiscal rule of a 3% deficit relative to GDP to "slow the downward spiral of economic activities, ” according to Li-Gang Liu at Citigroup Inc. Measures such as cutting interest rates and the proportion of deposits banks must set aside as reserves are possible, said Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong.