not going to happen that is lie saying what would happen if the US went to war with Russia or Aliens land here....LOL
(Bloomberg) -- China’s central bank cut benchmark interest rates for the second time in three months as disinflation gives room to step up support for the nation’s slowing economy.
The one-year deposit rate will be lowered by 25 basis points to 2.5 percent and the one-year lending rate will drop 25 points to 5.35 percent on March 1, the Beijing-based People’s Bank of China said on its website late Saturday.
The move reflects deepening concern over an economy squeezed by a property slump, tighter controls over local government debt and rising capital outflows. By adding rate cuts to a reduction in the cash banks must set aside as reserves, the PBOC is intensifying its easing measures along with more than a dozen global counterparts this year as plunging commodity prices provide scope to support growth.
“A rate cut was urgently needed,” said Wang Tao, the chief China economist at UBS Group AG in Hong Kong, who predicted one or two more reductions this year. “The debt burden is heavy, and the PBOC has to act to keep the financial market stable.”
The PBOC also increased the deposit-rate ceiling to 1.3 times from 1.2, meaning banks can pay a larger margin over the benchmark. That eases the financial repression that has seen China’s savers effectively subsidize debt-funded investment.
The monetary authority lowered interest rates for the first time in two years in November.
“This time the PBOC acted very well,” said Shen Jianguang, the chief Asia economist at Mizuho Securities Asia Ltd. in Hong Kong. “After two rate cuts, the financing costs will be cut down pretty effectively, but more rate reductions are still needed.”
Shen expects the next reserve-ratio cut to come in late March, and the next rate reduction in April. Allowing banks to pay a higher margin over the benchmark rate is “almost entire liberalization” of the deposit rate, meeting a pledge by Governor Zhou Xiaochuan, he said.
The central bank said that while the November rate cut achieved “certain effects” in lowering financing costs, economic restructuring and falling global commodity prices cut consumer and industrial prices in recent months, leading to higher real interest rates.
Consumer prices rose at the slowest pace in more than five years in January and factory-gate deflation deepened to the lowest level since 2009.
Yellen is in full control ,she know how to navigate , she has no worries, she is one tough lady.cheers to her
LOL yes I remember hearing the same when q's were at 60 , 70m , 80, 90. 100...and will hear the same at 120, 130 , 140.......lol Central banks are in full control you can't fight Governments Can you? you can but you can't win Same with Central Banks !
LOL trying to educate people such as yourself shorts or Pudy followers who lost money after money believing a crash will happen, it just can't happen just as you can not flap your arms like a bird an fly but you shorts still do not get it. !
I agree , getting ready to buy the dip , missed this mornings dip, I hope get another one
S&P has turned green..Nas down now only 3 2 hours to go shorts are .............well .........
it's a non event because of the extreme weather, where do you live