0303 GMT - The PBOC could return to easing monetary policy to support Chinese economy, given U.S. President Trump's tariffs are likely to drag China's GDP growth, DBS Group Research's Samuel Tse says in commentary. DBS expects 30 bps worth of cuts to the 1-year loan prime rate and 100 bps worth of cuts to the reserve requirement ratio this year, together with resumption of the government bond-buying program. Downside risks to economy could also be cushioned by stronger fiscal support and supply of Chinese government bonds, the senior economist says. The PBOC may tighten liquidity offshore to support China's exchange rate, Tse adds. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 23:04 ET (03:04 GMT)
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