PBoC cut interest rates again this weekend, apparently in response to weaker-than expected data. All the signs are that the Chinese authorities are committed to using the powerful tools at their disposal to prevent a “hard landing”. Interest rates are just one tool in what we see as a powerful armoury of measures that the authorities can use. Looser monetary conditions, targeted stimulus spending and some stabilisation in the property sector should support growth in China’s copper demand. “We expect copper prices to maintain their current upward momentum and reach $7,200 per tonne by end-year, up from around $6,365 today and compared to a Bloomberg consensus of $6,500.” said Capital Economics
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