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17 Apr 2014
Monetary stimulus started in China - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes that Chinese authorities have opened the stimulus pump.
Key Quotes
"The Chinese authorities have responded again to the ongoing slowdown in economic growth by announcing further modest stimulus measures overnight. The State Council announced measures to support the agriculture sector including a reduction in the Required Reserve Ratio (RRR) for qualified commercial banks which are expected to have a small positive impact for economic growth. The government also announced that it would extend the tax benefits to promote employment at small businesses."
Key Quotes
"The Chinese authorities have responded again to the ongoing slowdown in economic growth by announcing further modest stimulus measures overnight. The State Council announced measures to support the agriculture sector including a reduction in the Required Reserve Ratio (RRR) for qualified commercial banks which are expected to have a small positive impact for economic growth. The government also announced that it would extend the tax benefits to promote employment at small businesses."