China's Central Bank Likely to Cut Interest Rate, Reserve Ratio Soon

The transcript discusses the State Council's recent meeting and their plans to use monetary policy tools, including the Triple R rate, to support the real economy, especially small businesses. It highlights the challenges faced by the Chinese economy, such as worsening virus outbreaks and extended lockdowns, leading to reduced growth forecasts. The focus is on the expected changes in the MLF rate, with predictions of a cut to provide more liquidity. Additionally, there is speculation about potential changes to the reserve requirement ratios, considering the economic pressures.

What is the primary focus of the Chinese State Council's recent statement?

• Promoting foreign investments

• Reducing government spending

• Using monetary policy tools to support the economy

• Increasing taxes on large corporations

What is the MLF rate expected to do soon?

• Decrease to provide more liquidity

• Be abolished

• Remain unchanged

• Increase by 10 basis points

How many economists surveyed by Bloomberg expect a 10 basis point cut in the MLF rate?

• 20

• 5

• 15

• 10

What is the Triple R in the context of China's monetary policy?

• An interest rate

• A lending facility

• A tax rate

• A reserve requirement ratio

What approach might the Chinese government consider to tackle economic challenges?

• Single policy change

• Double whammy approach

• Triple policy shift

• No change in policy