Beijing poised to loosen monetary policy in H1

China is expected to ease its monetary policy in the first half this year following the country’s recent reopening for cross-border travel as Beijing continues to stimulate domestic consumption and support vulnerable businesses, says SCB Chief Investment Office (SCB CIO).

The investment analysis division of Siam Commercial Bank believes the People’s Bank of China (PBoC) is likely to further loosen its monetary policy in 2023 by lowering the required reserve ratio for commercial banks.

The move is considered vital after China abruptly lifted restrictions for foreign travellers from Jan 8, said the think tank.

“In our view, the reopening of the country this time is a result of both a sharp slowdown in the economy and the protests in the streets during November 2022,” said Kampon Adireksombat, first senior vice-president at SCB CIO.

As part of strategies to stimulate…