A PBOC academic writes about rate cuts in Shanghai Securities News:
- China needs to cut reserve requirement ratio if yuan keeps falling in Aug and Sept
- China should also lower reverse repo rates to reduce short-term money market rates
- Drop in yuan won't necessarily trigger deflation and China shouldn't adopt large-scale stimulus measures
If China cuts, it will be on the weekend. If Chinese stocks don't follow the rest of the world down the drain, it's probably because of stimulus rumors.
