MNI: China's weekend rate cuts points to official's depth of concern

A useful piece analysis from MNI in response the the rate cut from the People’s Bank of China over the weekend

Its on the MNI 'MainWire', which is gated (if you want to spend a little cash, MNI's services are well worth considering).

In brief:

• An earlier-than-expected interest rate cut points to the depth of concern about a slowing economy and growing deflationary threat within Chinese policy-making
• The decision suggests that the government sees the balance of risk tipping towards these domestic concerns, even as net capital outflows grow
• Slowing growth and rising short-term risk indicates the PBOC is at least making good on its newfound commitment to "focus on the appropriate elasticity" of monetary policy.The monetary authority may want to gauge the impact of this weekend's rate cuts before deciding whether to move again, but the likelihood of intensifying outflows means the central bank will need to lower the required deposit reserve ratio in the weeks and months ahead.

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We had the news on Saturday (Mike burning the weekend oil ... though I personally think his time would be better spent having a shave ;-) ):

PBOC rate cut (more here)