China Reduces Interest Rates for First Time Since 2008 – Bloomberg 06-07-12

Salient to Investors:

Rate cut indicates China is concerned about weak loan demand, and that the economic slowdown and Bo Xilai’s ouster aren’t derailing government efforts to reshape the Chinese financial system.

UBS Hong Kong says the deposit-ceiling move is unprecedented and a milestone for interest-rate liberalization

Goldman Sachs, Morgan Stanley and Bank of America and others have cut economic-growth estimates for China.

Predictions:

Mizuho Securities Asia sees the beginning of a rate cut cycle and at least one more reduction in 2012

Read the full article at http://www.bloomberg.com/news/2012-06-07/china-cuts-interest-rates-for-first-time-since-2008.html

Leave a Reply

Your email address will not be published. Required fields are marked *