Currency Analyst since 2010

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

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