China Cuts rates by 25bps
September 15, 2008
Overnight the Peoples Bank of China has decided to cut interest rates by 25bps, marking the first rate cut in 6 years. Recent rhetoric from the PBOC has shifted away from an inflation fighting stance to the promotion of growth, as such today’s action has not necessarily come as a surprise to the market place. In the absence of a market to trade the Chinese Remnimbi the Japanese Yen, a proxy for many of the pegged Asian currencies, was sold off During the Asian and early European sessions, reaching a high of 106.90 from 104.80.