PBOC a quick mover

China announcing a slight loosening in monetary policy:

After Asian markets closed, the People’s Bank of China announced that reserve ratios were being cut by 50 basis points, from 21.5% to 21.0%. The move was somewhat of a surprise and has started a turnaround in sentiment in the financial world. The reserve ratio cut is significant because it is the first time reserve ratios have been cut since 2008.

http://crackerjackfinance.com/2011/11/china-starts-monetary-policy-easing-cycle-rest-of-world-provides-additional-liquidity/?utm_source=rss&utm_medium=rss&utm_campaign=china-starts-monetary-policy-easing-cycle-rest-of-world-provides-additional-liquidity

… was a little overshadowed by the actions of other central banks in lowering swap rates. Nevertheless, a very significant move out of China.

Is it just me (no, it isn’t) or does it seem like the PBOC moves relatively quickly for a central bank? China bears (and other perma-bears), take note.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s