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.
Hey @mega_dreamer can we get a prediction market on this? Will China enter into a recession in 2025?
If You reduce gov spending it already is IMO
Done! https://beta.predyx.com/market/china-recession-in-2025
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.
It seems like it is a lot worse than they anticipated.
Oh yes. The CCP has a problem
I feel they also arent waiting enough for their cuts to actually have results. Not that they ever will.
''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?
Falling profits and cutting rates what’s the plan?
The keynesian playbook on steroids