NAB pushes out first rate cuts to May 2025 as “lower for longer” strategy plays out
Insight
Modest Chinese stimulus highlights competing policy objectives.
Since March, Chinese authorities have eased COVID-19 countermeasures and attempted to return to normal economic activity. So far, progress has been slow, with high frequency measures suggesting a plateauing in the industrial recovery from early April and ongoing softness in services. While the majority of the country’s firms are back in business, only a small proportion are fully operational, given weakness in domestic demand and a constrained export environment. As a result, China will implement stimulus to support the rebound, however it is likely to look different to earlier episodes.
For further details, please see the China Economic Update – June 2020
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