China economy: With more US tightening on the horizon, could this be Beijing’s last chance to cut rates in 2022?

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China’s all-in stance to defend the economy may justify the central bank’s first policy rate cut in five months on Wednesday, a move supported by inflation figures and a return of capital inflows.

A rate cut this week could be the last opportunity for China’s central bank this year, analysts say, because US inflation – which is at its highest point in decades – is almost certain to guarantee a hike of 50 basis points or more at the Federal Reserve’s Thursday meeting, while more aggressive increases could come.