by Marc Chandler
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After posting the daily analysis, the PBOC announced a 25 bp cut in required reserves. This is said to free up around CNY530 bln or around $83 bln. It may help explain the failure to cut the benchmark Medium-Term Lending Facility. Some rural banks may see a 50 bp cut in reserve requirements.
It seems like it is too small of move to satisfy expectation or address the growing economic challenges. More monetary and fiscal stimulus will be necessary to help offset the economic crunch from the Covid-lockdowns and disruptions. The dollar firmed slightly against the offshore yuan (CNH) but remains softer on the day.
Full story here Are you the author?He has been covering the global capital markets in one fashion or another for more than 30 years, working at economic consulting firms and global investment banks. After 14 years as the global head of currency strategy for Brown Brothers Harriman, Chandler joined Bannockburn Global Forex, as a managing partner and chief markets strategist as of October 1, 2018.
Tags: $CNY,China,Featured,newsletter
