China's central bank announces a 100 bps cut in RRR
- 50 bps cut to take into effect on 15 January
- Another 50 bps cut to take into effect on 25 January
This was very much preempted by Chinese premier Li Keqiang earlier today here. The PBOC says that the latest RRR cuts will help offset liquidity volatility during the lunar new year holiday and will release about CNY 1.5 trillion in liquidity to markets.
China has been hinting that they will be softening their stance on monetary policy and voila, we're already seeing the first signs of that. The PBOC insists that the cuts here are "not a big stimulus" though. In other words, be prepared for more to come during the year.
