0851 GMT - China could lower its 2025 inflation target to 2% from 3%, Goldman Sachs analysts say in a research note. China's 31 provinces held their local Two Sessions earlier this month, in which they set the their regional 2025 economic targets. GS predicts the local targets shed light on what may be the national targets, which will be unveiled in March. Most provinces lowered their CPI targets to around 2%. China's inflation guidance is widely perceived as a ceiling rather than a realistic goal, especially after headline inflation stayed below 1% in recent years, they note. If the likely lowered guidance is meant for moving toward a target, this would imply more policy measures will be implemented to boost demand and eventually market sentiment. However, if it remains an effective ceiling, it would have none to even a negative impact on market sentiment, they add. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
January 23, 2025 03:51 ET (08:51 GMT)
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