Representatives from the People’s Bank of China and other Chinese financial market regulators met with bank executives over the weekend and instructed the lenders, once again, to boost loans to support an economic recovery.
The good news is that they did this. The bad news is that they had to do this. The context is of course the rapidly growing concerns that China’s deepening property crisis is starting to spillover into its financial system.
Also on the meeting agenda were discussions on measures to prevent and reduce local government debt risks.
We’ll get rate cuts from the People’s Bank of China today:
This article was written by Eamonn Sheridan at www.forexlive.com. Source