PBOC Will Keep Its Accomodative Stance, Says BBVA’s Xia

The video discusses the implications of the 2020 RR cut by the Chinese Central Bank, highlighting its impact on the economy, trade war, exchange rate, and debt concerns. It explores the PBOC's accommodative stance and the use of liquidity and quantitative tools over interest rate cuts to stimulate the economy. The video also examines the expected effects on the loan prime rate, predicting a decrease due to market pressures.

What is the primary reason for the Chinese Central Bank's accommodative stance?

• To decrease inflation

• To address trade war issues and exchange rate pressures

• To increase interest rates

• To reduce government spending

Which tool is the Chinese Central Bank likely to use instead of interest rate cuts?

• Foreign exchange reserves

• Tax incentives

• Liquidity and quantitative tools

• Fiscal policy

What is the expected outcome of the Chinese Central Bank's initial measures?

• Reduction in foreign investments

• Increase in unemployment

• Boost in market confidence

• Decrease in consumer spending

How is the loan prime rate (LPR) determined?

• By international agreements

• By market forces

• By consumer demand

• By government mandate

What is the anticipated change in the loan prime rate (LPR) for the year?

• Increase by 20 basis points

• Remain stable

• Fluctuate unpredictably

• Decrease by 20 basis points