China's central bank comments
- To deepen market-oriented FX reforms in 2019
- To keep monetary policy stable, improve counter-cyclical adjustments
- To keep interest rates stable
- Will steadily push forward yuan internationalisation
- Will orderly resolve shadow banking crisis
- Will improve offshore yuan market liquidity framework
I think they've already done a decent job in preempting markets following the decision at the end of December to drop the wording of "neutral" in its monetary policy wording and then we saw Chinese premier Li Keqiang hinting at RRR cuts earlier today.
All of that culminated in the RRR cut seen earlier today here. Though a boost to risk, the real worry is that it won't have a lasting and intended effect. China moved to cut RRR three times last year and yet equities slumped and economic activity continued to slow.
