PBoC, government stimulus in China are merely a “painkiller, not a cure” for the economy

I posted earlier in the week with links to news about China’s RRR cut:

Remarks from analysts at ANZ following the cut:

  • “The authorities will likely launch more measures to stabilize market sentiment, such as mobilizing state resources to support the stock market”
  • “The authorities are clearly concerned about market sentiment”
  • also mentioned that the PBoC is taking measures to avoid a weakening in the Chinese yuan
  • said the latest moves might not be enough to fully reassure investors and that more needs to be done to foster wider reforms
  • “This requires some structural measures to boost private sector confidence and the long-term outlook of the real estate sector,”
  • “The measures announced so far do not seem sufficient”
  • “It’s like a painkiller, not a cure for the economy”
  • authorities “are very serious about easing monetary policy”

Offshore yuan weekly candles:

This article was written by Eamonn Sheridan at www.forexlive.com. Source