Markets after PBOC cut rates
The People's Bank of China (PBOC) cut the benchmark rate by 25 basis points to 4.6% on Tuesday, and reduced reserve requirements (RRR) by 50 basis points to 18% for most big banks.
Chinese central bank acted after a slump of Chinese stocks led to a selloff in equities all over the world on Monday.
After the move of Chinese regulator Shanghai Composite was up by more than 3% on Wednesday, but then eased down showing 1% loss. Investors expected the PBOC to act earlier, during the weekend, and no there’s no confidence that the move will help Chinese economy and markets.
Chart from Bloomberg