{"id":13754,"date":"2015-10-23T06:54:38","date_gmt":"2015-10-23T11:54:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=13754"},"modified":"2015-10-23T06:54:38","modified_gmt":"2015-10-23T11:54:38","slug":"breaking-china-cuts-interest-rate-by-25-bps-cuts-rrr-by-50-bps-futures-soar-fed-december-rate-hike-back-in-play","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=13754","title":{"rendered":"Breaking: China Cuts Interest Rate By 25 bps, Cuts RRR by 50 bps; Futures Soar; Fed December Rate Hike Back In Play"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-10-23\/breaking-china-cuts-interest-rates-reserve-requirement-ratio-futures-soar\" target=\"_blank\">Breaking: China Cuts Interest Rate By 25 bps, Cuts RRR by 50 bps; Futures Soar; Fed December Rate Hike Back In Play<\/a><\/h3>\n<p>Just two days ago, we noted that according to Citi&#8217;s Willem Buiter, there would be &#8220;<a href=\"http:\/\/www.zerohedge.com\/news\/2015-10-21\/citi-expects-imminent-easing-central-banks-china-australia-japan-and-europe\">Imminent Easing From Central Banks Of China, Australia, Japan And Europe<\/a>.&#8221; Fast forward 48 hours when he is already half right &#8211; not only did Europe confirm it is about to cut, but moments ago none other than China joined the global easing orgy when in a completely unexpected development as it happened on a Friday (we are scouring\u00a0 various databases to find the last time, if ever this happened) China announced it has cut not only its 1 year lending rate and 1 year deposit rate by 25 bps, but also its reserve requirement ratio by 50 bps.<\/p>\n<ul>\n<li><strong>CHINA CUTS BANKS\u2019 RESERVE REQUIREMENT RATIO<\/strong><\/li>\n<li><strong>CHINA CUTS INTEREST RATES<\/strong><\/li>\n<li><strong>CHINA CUTS 1-YEAR LENDING RATE BY 0.25 PPT<\/strong><\/li>\n<li><strong>CHINA CUTS 1-YEAR DEPOSIT RATE BY 0.25 PPT<\/strong><\/li>\n<li><strong>CHINA REMOVES DEPOSIT RATE CEILING FOR BANKS<\/strong><\/li>\n<li><strong>CHINA CUTS RESERVE RATIO BY 0.5 PPT<\/strong><\/li>\n<li><strong>CHINA INTEREST RATE CUT EFFECTIVE FROM OCT. 24<\/strong><\/li>\n<\/ul>\n<p>The\u00a0<a href=\"http:\/\/www.pbc.gov.cn\/goutongjiaoliu\/113456\/113469\/2968725\/index.html\">PBOC&#8217;s statement\u00a0<\/a>in its google-translated entirety:<\/p>\n<blockquote><p>People&#8217;s Bank of China, from October 24, 2015, down financial institutions RMB benchmark lending and deposit interest rates, in order to further reduce the social cost of financing.\u00a0<strong>Among them, one-year benchmark lending rate by 0.25 percentage point to 4.35%; year benchmark deposit rate by 0.25 percentage point to 1.5%; adjusted for each other grade benchmark interest rate loans and deposits<\/strong>, the People&#8217;s Bank lending rates of financial institutions ; personal housing accumulation fund loan interest rates remain unchanged. Meanwhile,\u00a0<strong>commercial banks and rural cooperative financial institutions are no longer set the upper limit of the floating interest rates on deposits<\/strong>, and pay close attention to improve the market-oriented interest rate formation and regulation mechanism, strengthen the central bank interest rate system of regulation and supervision, improve the efficiency of monetary policy transmission.<\/p><\/blockquote>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breaking: China Cuts Interest Rate By 25 bps, Cuts RRR by 50 bps; Futures Soar; Fed December Rate Hike Back In Play Just two days ago, we noted that according to Citi&#8217;s Willem Buiter, there would be &#8220;Imminent Easing From Central Banks Of China, Australia, Japan And Europe.&#8221; Fast forward 48 hours when he is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,130,1154,2151,2914,2615,3491],"class_list":["post-13754","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-china","tag-interest-rate-policy","tag-monetary-easing","tag-pboc","tag-peoples-bank-of-china","tag-rmb"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13754"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13754\/revisions"}],"predecessor-version":[{"id":13755,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/13754\/revisions\/13755"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}