MONEY MASTER

China's central bank is expected to implement its most significant interest rate cuts in a decade next year as policymakers work to counter economic headwinds, including weak domestic demand, deflation, and the potential impact of US tariffs under President-elect Donald Trump. Key Projections: Rate Cuts Expected : Goldman Sachs and Morgan Stanley predict a 40-basis-point reduction in the People's Bank of China (PBOC) policy rate in 2025, lowering the seven-day reverse repo rate to 1.1%. Economists’ Views : Some analysts, like Mizuho Securities, forecast even deeper cuts of up to 60 basis points in lending and policy rates. Economic Context: Deflation Concerns : China faces its longest deflation streak this century, keeping real borrowing costs high despite rate cuts. Trade Pressures : A potential resurgence of US-China trade tensions could further strain exporters, compounding economic difficulties. Growth Challenges : The GDP deflator, a broad price measure, remains below zero...

Former Federal Reserve Bank of New York President William Dudley has suggested a compelling case for a half-point interest rate cut at the Federal Reserve's meeting next week. Speaking at a forum organized by The Bretton Woods Committee in Singapore, Dudley stated, "I think there’s a strong case for 50," highlighting his preference for a more aggressive monetary policy move. Dudley, who led the New York Fed until 2018 and now chairs the Bretton Woods Committee, pointed to a slowing US labor market and emphasized that the risks to jobs are more significant than ongoing inflation challenges. He referenced Fed Chairman Jerome Powell's comments at Jackson Hole last month, which underscored a desire to prevent further weakening in the labor market. Dudley's remarks arrive as recent data showed core US inflation unexpectedly rose in August , reinforcing the likelihood of a quarter-point rate cut next week. Despite this, Dudley believes there is room for a more subs...