Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
UK Economy Posts Surprise June Growth as World Cup and Hot Weather Lift Activity 
US Dollar Slips as Weak Retail Sales Reduce Fed Rate Hike Bets 
Oil Prices Slide as OPEC, IEA Cut 2026 Demand Forecasts 
Gold Prices Slip From Two-Month High as Inflation and Fed Outlook Drive Markets 
Asian Stocks Rise as AI Chip Rally Lifts South Korea, Japan 
European Stocks Steady as U.S.-Iran War, Euro Zone Data Keep Investors Cautious 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
Add as a preferred source on Google
The People’s Bank of China (PBoC) is expected to remain more prudent in order to control macro leverage going forward, thus diminishing the likelihood of a cut in the required reserve rate (RRR) for all commercial banks before June, according to the latest report from ANZ Research.
China’s top decision-making body, the Central Politburo of the Communist Party, released a statement April 19 outlining the country’s economic situation. The statement confirms that growth in the first quarter of the year has been better than expected. It also deems structural factors to be contributing to ongoing downward pressures.
The increase in China’s macro leverage indicates that growth is still on a debt-driven path. In Q1 2019, total social financing and M2 money supply growth rebounded to 10.7 percent y/y and 8.6 percent y/y respectively, even as nominal GDP growth slowed to 7.8 percent y/y, the report added.
This mismatch will increase financial risks further as China’s total debt-to-GDP ratio is as high as 249 percent at the present time. Property investment rebounded to 11.8 percent y/y while manufacturing investment was still sluggish during Q1.
Meanwhile, 65 out of 70 cities monitored by the National Bureau of Statistics recorded a rise in property prices in March. This is not a favourable way towards a sustainable recovery, according to Primer Li Keqiang’s report on the National People’s Congress this year.
"We expect Chinese policymakers to continue to support the economy through proactive policies," ANZ Research further commented in the report.
