Morgan Stanley Cuts China Growth Outlook
Morgan Stanley revised down its forecast for China's economic growth by half a percentage point to 8.5% this year after April economic data turned out much weaker than expected. The US investment bank also predicted two interest rate cuts, each of 25 basis points, by the end of this year.
China to Accelerate Approving Public Works
China's government has ordered this year's major infrastructure project plans be submitted for approval by the end of June and will speed up reviewing them and issuing budgets ahead of schedule, a person familiar with the matter told the China Securities Journal. It is also likely that construction on some infrastructure projects originally slated to kick off in 2013 will begin this year, the source said. The government will prioritize economic growth and spur consumer spending by adopting an active fiscal policy and a prudent monetary policy, premier Wen Jiabao said yesterday, without mentioning concerns about inflation, which eased a bit in April. Growth of China's fixed asset investment slowed to 20.2% in the first four months of the year.