China’s central bank, the People's Bank of China (PBoC), has slashed the reserve requirement ratio by 50 basis points, bringing it to an average of 6.6%. This immediate move comes alongside a cut in the seven-day reverse repo rate by 20 basis points to 1.5%, a crucial rate used to set the country’s benchmark interest rates.
At the same time, industrial profits continue to decline, with August figures showing a 17.8% drop compared to the previous year. This follows a modest gain of 4.1% in July, signaling deeper economic challenges and pushing Beijing toward further stimulus measures.
88 sats \ 0 replies \ @Golu 27 Sep
This aligns to their plans of supporting with billions. They think the industry gain will improve, but these are just projections and Chinese are very bad projecting.
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Hey @mega_dreamer can we get a prediction market on this? Will China enter into a recession in 2025?
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If You reduce gov spending it already is IMO
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Will China enter into a recession in 2025?
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47 sats \ 0 replies \ @xz 27 Sep
''a cut in the seven-day reverse repo rate by 20 basis points to 1.5%.''
20BPS = 0.2%. That doesn't sound a lot. .. now we are seeing cuts of 20BPS, 50BPS proportions again. I'm wondering if we see a large economy get closer to zero percent, what will that do to the global confetti fx markets.
Is this the Dollar milkshake playing out?
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It seems like it is a lot worse than they anticipated.
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20 sats \ 1 reply \ @TomK OP 27 Sep
Oh yes. The CCP has a problem
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I feel they also arent waiting enough for their cuts to actually have results. Not that they ever will.
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Falling profits and cutting rates what’s the plan?
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The keynesian playbook on steroids
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