The Bank of China cut rates today for the third time in two months. With five consecutive quarters of slowing growth and a downturn in industrial exports sparked by the deteriorating global markets, central bankers in China are taking their cues from the US and lowering rates to soften the landing.
If you have been reading our work you know our thesis: despite the leveling trajectory a maturing economy, China’s private sector will increasingly focus on growing internal demand, and that in turn will feed a growth pattern that will continue to greatly outpace the US and EU on a relative basis. This rate cut should bolster internal domestic consumption in China help prove us right.
Andrew Barber
Director
If you have been reading our work you know our thesis: despite the leveling trajectory a maturing economy, China’s private sector will increasingly focus on growing internal demand, and that in turn will feed a growth pattern that will continue to greatly outpace the US and EU on a relative basis. This rate cut should bolster internal domestic consumption in China help prove us right.
Andrew Barber
Director
