Chinese economists’ forecasts for second-quarter growth are “too optimistic,” according to Lu Ting, China economist at Bank of America Corp. (BAC:US)’s Merrill Lynch unit.
Bank of America estimates growth of 7.5 percent in the second quarter though it may be as low as 7.3 percent to 7.4 percent, Lu said in a Bloomberg Television interview today from Hong Kong. He predicts two more interest-rate cuts by the end of this year and three more reductions in lenders’ reserve- requirement ratios. The economic data are scheduled to be released July 13.
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