Over the weekend, we have a 3rd major central bank deciding to undertake easing measures as People’s Bank of China cut its bank reserve ratio requirement (RRR) by 50 basis points bring the rate down to 20.5%. That follows fresh quantitative easing measure by the Bank of England and Bank of Japan in the last 2 weeks. The recent macro data from China shows 3 important developments. Recent Data Points to Poor Trade, But Higher Inflation One is that trade continues to show signs of struggle in China, with the latest trade balance report showing export growth declining year-over-year. While imports fell by an even bigger ... (full story)