Analysts at Standard Chartered Global Research expect the People’s Bank of China (PBoC) to lower the reserve requirement ratio (RRR) by 25 basis points both in Q3-2023 and Q1-2024.

China can still achieve growth target

"Fiscal spending fell behind the budget in H1. We expect the government to adopt a more expansionary fiscal policy in the remainder of 2023, fully utilising this year’s budgeted broad deficit of 7.5% of GDP."  

"Despite a weak start to Q3, we still think China can achieve its GDP growth target of c.5% in 2023, thanks to favourable base effects, a reopening boost to the services sector, and increased policy stimulus. We maintain our full-year 2023 GDP growth forecast for China at 5.4%."