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by The value of the offshore yuan is relatively steady, hovering around 7.21 to the US dollar. China has announced its economic targets for 2024, aiming for a growth rate close to 5%. This target aligns with what was anticipated. Additionally, the nation is focusing on maintaining the urban unemployment rate at approximately 5.5%.
They plan to generate 12 million new jobs in urban areas and keep the Consumer Price Index (CPI) rising to about 3%. These targets are set to ensure the country’s economic stability and growth.
USDCNH Analysis 4-Hour Chart
Anticipation for Policy Updates from China
As China holds its critical “Two Sessions” meetings, investors and observers are on the lookout for any new and specific policy announcements. These updates are crucial as they could indicate the future direction of the country’s economic policies. Moreover, there has been a noticeable slowdown in the growth of the Chinese services sector, reaching a three-month low as of February. This deceleration in growth adds to the eagerness for clear policy guidance from government meetings.
China’s Monetary Policy Adjustments
In response to the changing economic landscape, the People’s Bank of China has made a significant move. It reduced the five-year loan prime rate by 25 basis points, bringing it down to 3.95%. This adjustment, completed in February, represents the most substantial cut since this rate was established in 2019. This action reflects the central bank’s efforts to support the economy and encourage growth amid varying domestic and international challenges.
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