Did you say MOAR? Goldman on the PBoC:
PBOC held a press conference this afternoon on the MLF and OMO policy rate cut on Monday (January 17). In general the tone from PBOC is very dovish and pro-growth. PBOC stated the need to expand the monetary policy toolkit, hinted at an LPR (Loan Prime Rate) cut and potentially another RRR cut, and also emphasized the need to stabilize expectations and push for faster credit growth through mentioning that “the previous decline in macro leverage gives room for monetary policy easing”.
We summarize key takeaways from the press conference:
