PBoC surprises markets, cuts rates, lowers reserve requirements

26 August 2015

 

The People’s Bank of China (PBoC) surprised markets by announcing cuts to the lending and deposit rates, while reducing the amount of capital banks most hold against loans. In a move normally made on a weekend, the one year lending rate and deposit rate was reduced by 25bps to 4.6% and 1.75% respectively and the bank reserve requirements was reduced from 18.5% to 18%. The surprise cuts initially put a...

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