The People’s Bank of China unveiled a major reform to its system of benchmark interest rates on Tuesday, a move that’s immediately focused attention on if and when the real monetary easing will begin. The central bank will now release a so-called Loan Prime Rate each month, a yardstick meant to peg the cost of borrowing by firms and households more closely to the rates that banks pay for cash in money markets. While that step itself should already nudge borrowing costs a few basis points lower, analysts say that outright cuts to monetary policy tools are still needed. Even though China’s economy is slowing to its ... (full story)