Economists to PBOC: Just Ease Already

The People’s Bank of China (PBoC) isn’t known for embracing global trends, but it’s now widely expected to follow the easing footsteps of its international peers after a raft of dismal data.

Twin purchasing managers’ index (PMI) surveys for January released in the past 48 hours showed contractions in China’s factory activity. The government’s official PMI stood at 49.8, a more than two-year low, while HSBC’s private survey came in at 49.7, its second month below the 50 level that separates expansion from contraction. Other data over the weekend showed growth in the services sector dropped to a one-year low in January.

“We think the PMIs opened the window for a broad 50 basis-point RRR (reserve ratio requirement) cut in the first quarter,” said economists at Citi in a recent report, adding that the last round of country-wide RRR cuts was triggered by a below-50 PMI reading in late 2011.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.