0919 GMT - China may implement a 20bp interest rate cut in 1Q25, UOB economists write in a note. The country's 4Q GDP growth beat estimates, accelerating by 5.4% on year, driven by growth in the industrial sector, they add. However, depreciation pressure on the Chinese yuan could cause some delay, as the central bank has stepped up efforts to support the currency. As a result, UOB expects the one-year loan prime rate to remain unchanged at 3.10% and the 5-year loan prime rate to stay at 3.60%. The central bank may have more room for a cut in the reserve requirement ratio, given it didn't deliver a RRR cut in December, UOB notes. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
January 17, 2025 04:19 ET (09:19 GMT)
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