More on the PBOC cut over the weekend (500 billion yuan "unlocked")

I posted last week on the imminent likelihood of a reduction in the reserve requirement ratio

Over the weekend we got the expected cut from the People's Bank of China

• Reserve requirement ratio for some banks will drop by 0.5%

Cut will apply to

• major state-run commercial banks
• joint-stock commercial lenders
• postal banks
• city commercial lenders
• rural banks
• foreign banks

PBOC reckon it will unleash 500 billion yuan for the five biggest state-run banks and more elsewhere

Bloomberg have more if you're interested

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The PBOC have been dropping the value of the onshore yuan, and now this easing. Its indicative of multi-prong efforts from China to respond to trade threats against it. (Just IMHO, of course ;-) )

Authorities in China are easing back on tightening efforts, providing support. They'll be wary of how this impacts on the RMB - the efforts will be an input weakening it.