PBOC Will Stay on Prudent Monetary Policy Stance, Says NatWest’s Liu

The video discusses the recent changes in the loan prime rate, with a focus on the PBOC's monetary policy and its impact on the market. It highlights the expected decrease in the one-year loan prime rate and the PBOC's liquidity injections to support the economy amid the virus outbreak. The video also covers the government's approach to deleveraging and financial stability, emphasizing targeted fiscal policies and infrastructure projects.

What is the expected change in the one-year loan prime rate according to the market?

• Increase by 10 basis points

• Remain unchanged

• Decrease by 10 basis points

• Decrease by 45 basis points

Why is the PBOC maintaining a relatively accommodative stance in the short term?

• To support foreign investments

• To stabilize the currency

• Due to increased liquidity demand from the virus impact

• To counteract inflation

What is the expected long-term stance of the PBOC regarding liquidity injections?

• Aggressive liquidity injections

• Complete withdrawal of liquidity

• Gradual normalization

• No change in current policy

How is the government balancing deleveraging with economic support during the virus outbreak?

• By cutting all fiscal spending

• By allowing more leverage in the short term

• By focusing solely on corporate tax cuts

• By increasing interest rates

What fiscal measures are being considered to support key sectors?

• Eliminating all government subsidies

• Reducing infrastructure projects

• Implementing targeted tax cuts and infrastructure projects

• Increasing corporate taxes