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20 Apr 2015
PBoC eases further to bolster economy – OCBC Bank
FXStreet (Edinburgh) - According to analysts at OCBC Bank, the recent move by the PBoC could pump $200 billion into the markets.
Key Quotes
“China’s larger than expected RRR reductions (cut by 100bps to 18.50% for all banks while additional targeted cuts) over the weekend are expected to potentially free up USD200bn in additional liquidity and may bolster global sentiment beyond any short term jitters”.
“Structurally, the bolder initiative by the PBOC to underpin the economy is expected to be perceived in a positive light, with the AUD-USD already firmer early Monday in Asia”.
“This morning, the lower USD-CNY parity of 6.1255 we think was “in line” with broad dollar moves and does not signal any concomitant policy signal with the weekend RRR cuts”.
Key Quotes
“China’s larger than expected RRR reductions (cut by 100bps to 18.50% for all banks while additional targeted cuts) over the weekend are expected to potentially free up USD200bn in additional liquidity and may bolster global sentiment beyond any short term jitters”.
“Structurally, the bolder initiative by the PBOC to underpin the economy is expected to be perceived in a positive light, with the AUD-USD already firmer early Monday in Asia”.
“This morning, the lower USD-CNY parity of 6.1255 we think was “in line” with broad dollar moves and does not signal any concomitant policy signal with the weekend RRR cuts”.