China press: "cannot rule out the possibility that China may cut its benchmark interest rate"
This from the Global Times, a commentary piece on US Federal Reserve Chairman Jerome Powell's testimony:
- signalled that the Fed would likely cut interest rates
Being the Global Times they couldn't help themselves. adding:
- It's highly unusual for the Fed to lower interest rates at a time when the economy has been growing quickly and unemployment is low.
- It seems that US President Donald Trump's pressure for interest-rate cuts has affected the Fed's independence.
(bolding mine …. those GT scallywags :-D )
It goes on with a view of the implications for China policy:
PBOC may take pro-active and pre-emptive measures
- granting of more loans at lower interest rates to small and medium-sized enterprises
- We also cannot rule out the possibility that China may cut its benchmark interest rate
GT wind up on this cheerful note:
- Unconventional methods may be needed because a loss of independence in the Fed will encourage the belligerence of the US government and escalate the trade war.
ps. The PBOC has not changed China's benchmark one-year lending rate since 2015.
If and when it happens it'll be a big change. Stay tuned!