People have been predicting this for months, and finally it’s here.
After a slew of weak economic data, China is cutting rates.
The People’s Bank of China delivered a 50-basis-point cut in banks’ reserve requirement ratio (RRR), effective from May 18.
The latest RRR cut – the third in six months — came a day after a flurry of data showed that the world’s second-largest economy was slowing faster than expected, with industrial production weakening sharply in April and investment slowing to its lowest level in nearly a decade.
What’s interesting is that one of the China-bull arguments is that the government would do a lot more pumping at some point this year thanks to the punk data.