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.
… 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.