There were a string of policy easings from the People's Bank of China yesterday, summarised here:
Via UBS on the Bank's rate cuts:
- The decision of the People’s Bank of China to cut rates by 0.1 percentage point was perhaps inevitable—even on official data, the domestic economy is lethargic.
- Does a small change in borrowing costs really alter anything?
- Arguably, China is not constrained by the cost of credit.
- This is a signal of policymakers’ concerns over economic growth, and perhaps represents a downpayment on future action.
I posted yesterday that what we got from the PBOC was being perceived as too little too late, and that we are an ungrateful lot, aren't we? UBS is looking for more too!
PBoC Governor Pan Gongsheng
