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China Delivers RRR Cut Amid Rapidly Deteriorating Sentiment
Everyone knew it was coming, the question was "when?"
The answer, as it turns out, is "now." Or actually, on January 15 and then again on January 25.
After a week that saw both the official and Caixin PMIs disappoint and amid rapidly deteriorating sentiment, the PBoC has delivered another RRR cut in an effort to bolster the economy. The required reserve ratio for banks will drop 0.5% on January 15 and by another 0.5% ten days later.
This will free up a net CNY800 billion of liquidity, th
