StanChart's Liu: Looking for Asymmetric Cut of China LPR

The video discusses the need for asymmetric LPR rate cuts in China, focusing on supporting the real estate sector and addressing weak credit growth. It highlights the high real interest rates due to low inflation and the potential for further rate cuts. The discussion also covers the effectiveness of monetary and fiscal policies, suggesting that fiscal measures like consumption coupons could boost domestic consumption. The video concludes with an outlook on economic measures and the potential for a stimulus package.

Why is there a need for a deeper cut in the LPR rate for the five-year term?

• To support the manufacturing sector

• To increase export competitiveness

• To boost the technology sector

• To aid the real estate sector

What is the expected trend for CPI inflation in China in the coming months?

• It will rise significantly

• It will dip into negative territory

• It will remain stable

• It will increase slightly

What is a potential consequence of high real rates in China?

• Increased foreign investment

• Higher domestic consumption

• Reduced credit growth

• Improved export performance

Which policy is considered more effective for economic recovery in China?

• Environmental policy

• Fiscal policy

• Monetary policy

• Trade policy

What is a suggested measure to boost domestic consumption in China?

• Raising interest rates

• Reducing government spending

• Implementing consumption coupons

• Increasing export tariffs