The news of the PBoC 25bp cut is here ICYMI:
BNZ are taking a cautious view on it (bolding is mine):
- The 5-year rate is the important one for mortgages and, while the move is designed to help support the housing market, there has been little sign of traction from the previous mortgage cuts of nearly 200bps.
- Thus, the net stimulus to the economy should be considered marginal, given the prevailing troubles in the property market, but it all plays to further incremental policy stimulus, albeit well shy of the large fiscal stimulus that is likely required to have any meaningful economic impact. Market reaction to the move was muted.
Offshore yuan update:
