The Securities Times carried a story on Tuesday, noting that the People’s Bank of China’s (PBOC) surprise rate cut announced on Monday may be the first in a series of policies to stabilize growth in the second half of the year.
Additional takeaways
“Besides monetary policies, China should also use more fiscal stimulus to boost domestic demand.”
“In addition, more industrial policies and local property market measures are crucial to drive the recovery in production and consumption.”
“Chinese banks are expected to cut the loan prime rates this month following the PBOC’s move on Monday.”
Market reaction
USD/CNY keeps its retracement intact from three-month highs of 6.7942 reached in opening trades. The spot is currently trading at 6.7846, still up 0.16% on the day.