China’s stimulus to prop up weak economy
by AIB Treasury Economic Research Unit
- 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.
|
|
