Should have minimal real impact in the short-term as it takes time for bank to lend out money especially in short-term. Also amount is small compared to daily volume of forex traded.
China acts to crank up credit as lending, economy slow
China's central bank cut the amount of cash banks must hold in reserves on Saturday, boosting lending capacity by an estimated 350-400 billion yuan ($55.6-$63.5 billion) in a bid to crank up credit creation as the world's second-biggest economy faces a fifth successive quarter of slowing growth. The People's Bank of China (PBOC) is on the course of gentle policy easing to cushion the world's fastest-growing major economy against stiff global headwinds as Europe's debt crisis grinds on, although it has been treading warily. The cut, announced late evening, is set to boost the confidence of domestic stock investors, who have been ... (full story)
- Posted: Feb 19, 2012 4:06am
- Submitted by:Category: Fundamental AnalysisComments: 3 / Views: 1,621