China’s hefty rate cut is expected to provide an only marginal net stimulus to the economy

The news of the PBoC 25bp cut is here ICYMI:

BNZ are taking a cautious view on it (bolding is mine):

  • The 5-year rate is the important one for mortgages and,
    while the move is designed to help support the housing
    market, there has been little sign of traction from the previous mortgage cuts of nearly 200bps.
  • Thus, the net
    stimulus to the economy should be considered marginal,
    given the prevailing troubles in the property market, but it
    all plays to further incremental policy stimulus, albeit well
    shy of the large fiscal stimulus that is likely required to
    have any meaningful economic impact. Market reaction to
    the move was muted.

Offshore yuan update:

This article was written by Eamonn Sheridan at Source