MARKET OUTLOOK - Goldman Predicts Further Easing of Monetary Policy by China's Central Bank This Year

Goldman Sachs predicts that the People's Bank of China (PBoC) is likely to further ease its monetary policy in 2025. The assessment by Goldman analysts came after the release of PBoC's fourth quarter meeting statement on Friday. Analysts note that the PBoC has committed to implement a more proactive easing, including reducing reserve requirement ratios and policy interest rates when appropriate. Goldman expects the PBoC to cut interest rates by 20 basis points in both the second and fourth quarters, and by 50 basis points each in the first and third quarters through reserve requirement ratio reductions.