China's monetary stimulus plan not enough to offset Trump's tariff onslaught

‘Marginal’ 10bps cut to benchmark rate

Beijing’s recent tweaks to rates and the reserve requirement ratios (RRR) are meant to bolster China’s slowing economy, but all eyes are now on the negotiations with its larger trading partner, the US.

On Wednesday (7 May), Chinese policymakers introduced a swathe of measures including a ten basis point cut in the policy rate, a 50bps slash in the country's reserve requirement ratios (RRR) and another quarter-point reduction in its mortgage rates for first time buyers. SMT's Tom Slater: China remains a relevant player amid global market tumult The move came shortly after US and China said they will engage in their first trade talks since Washington imposed triple-digit tariffs on the world's second largest economy in April. According to Bank of America's China Watch report, ...