China expected to cut rates further

SHANGHAI: China will further cut interest rates to stabilise the economy, as shrinking China-US yield spreads won’t change Beijing’s monetary policy loosening bias, the China Securities Journal reported yesterday, citing former central bank adviser Yu Yongding.

The comments by Yu, an influential economist at the Chinese Academy of Social Sciences, comes as the US Federal Reserve is widely anticipated to hike interest rates later this week amid higher inflation, while some expect the People’s Bank of China (PBoC) to cut the rate on medium-term loans on Tuesday.