I'd like to provide a quick update on the latest news from China. Once again, China has decided to lower its prime lending rate (1-year) by 10 basis points. The country's intent is to stimulate growth through a loose monetary policy, but as I highlighted in my last Substack post, this approach appears to be yielding no results. It seems that China might be caught in a liquidity trap. The yuan's value is continuing to decrease, and when the news broke last night, USD/CNY had risen by approximately 33 basis points. As of my writing, this currency pair has risen by about 4 basis points.
China Forex and Rate Update
China Forex and Rate Update
China Forex and Rate Update
I'd like to provide a quick update on the latest news from China. Once again, China has decided to lower its prime lending rate (1-year) by 10 basis points. The country's intent is to stimulate growth through a loose monetary policy, but as I highlighted in my last Substack post, this approach appears to be yielding no results. It seems that China might be caught in a liquidity trap. The yuan's value is continuing to decrease, and when the news broke last night, USD/CNY had risen by approximately 33 basis points. As of my writing, this currency pair has risen by about 4 basis points.