JPMorgan: China to Cut 0.5% Deposit Reserve Ratio by 08-end

BEIJING, Aug 29, 2008 (SinoCast via COMTEX) -- JPM | Quote | Chart | News | PowerRating -- JPMorgan Chase (NYSE: JPM | Quote | Chart | News | PowerRating) yesterday forecasted that the People's Bank of China (PBC), the nation's central bank, would cut the deposit reserve ratio by 0.5% this yearend, and the indicator is likely to be reduced for four times in 2009.

In addition, the PBC was predicted to lift the benchmark interest rate of renminbi loans and deposits twice in the second half of next year, if the US federal fund interest rate could be elevated by 1.75%.

The world-known financial services provider also said that the exchange rate of renminbi against US dollar would hit 6.6 at 2008-end, higher than the expected 6.3% in May.

In 2009, the continuous US dollar depreciation will likely make the renminbi-US dollar exchange rate go up to 6.1, but the trade-weighted renminbi effective exchange rate is expected to keep rising stably. Meanwhile, China's monetary policy will be loosened step by step, added JPMorgan.

From www.cnstock.com, Page 1, Thursday, August 28, 2008 info@SinoCast.Com

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