The People’s Bank of China has just cut the reserve requirement ratio for banks by 0.5% according to WSJ.
The cut is apparently due to take place on February 24.
It had been a while since the last rate, cut, but recent hints from top leadership had indicated that one was coming.
While the country is still trying to choke off a housing bubble, there is obviously enough confidence about inflation being somewhat under check that easing can be undertaken.
This could provide a little juice for markets on Monday.