Monday, February 29, 2016

China Resumes Easing Cycle

China's actions, viewed as 'manipulation' by some, is nothing more than a reflection of global contraction that few central planners around the world are willing to recognize. China's decisive actions, however, will not reverse trends already in motion. The panic comes only after the majority loses confidence that those in charge have any influence other than lip service and easy monetary policy.

Headline: China central bank resumes easing cycle to cushion reform pain

BEIJING/SHANGHAI (Reuters) - China's central bank resumed its easing cycle on Monday, injecting an estimated $100 billion worth of long-term cash into the economy to cushion the pain from job layoffs and bankruptcies in industries plagued by overcapacity.

The People's Bank of China (PBOC) said on its website it was cutting the reserve requirement ratio, or the amount of cash that banks must hold as reserves, by 50 basis points, taking the ratio to 17 percent for the biggest lenders.



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