"China cuts rates again to shore up stumbling economy"

The People's Bank of China cus its one year prime rate less than expected, and its five year more than expected:

• China rate cuts: LPR 1 year 3.65% (from 3.7%) & 5 year 4.30% (from 4.45%)

The headline to the post is a typical one I'm seeing from notes around the place. "Stumbling" is a mild word to describe the Chinese economy, its getting hit hard by the property sector imploding under debt loads, defaults, mortgage payment strikes and buyers pulling away in fear of further price falls (and hopes too for dip-buyers!). Consumer demand is drying up. Rolling COVID-related restrictions and lockdowns are not helping. Even the weather is not helping right now:

• Sichuan province in China have extended power cuts - factories remain closed

The mid-rate on the CNY was set not as weak as expected for the onshore yuan today:

• PBOC sets USD/ CNY reference rate for today at 6.8198 (vs. estimate at 6.8251)

I posted earlier I thought offshore yuan would continue to head higher:

China rate cut on the schedule Monday, 22 August 2022 - yuan levels (support, resistance)

No reason to doubt that IMO. We'll see! Update:

eur EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term