This week’s actions by the Chinese authorities mark a major short term stimulus for the domestic and global economies.
The measures taken included a 20bps cut in the main short term policy rate, and a 50bps reduction in existing mortgage rates by the Bank of China, as well as a cut in reserve requirements for banks, and a lending pool to prop up equity markets.
The question remains whether this will be enough to boost the Chinese economy marked by weak demand and depressed sentiment in recent times.
Turning to the week ahead, the highlight of a busy US schedule will be the labour market report for September.
