China may cut rates in August, CICC

The China International Capital Corporation, one of the country’s largest investment banks, says the PBOC may lower rates in August to combat the economic slowdown. The CICC economists are cited in the official China Daily.

The market is already expecting rate cuts. In the rest of the world, the market sees rate cuts positively but in China, where the economic data is not trustworthy, cuts can make the market worry that the situation in deteriorating.