In the Post-FOMC Era.... I expect more changes in monetary policies from many countries will take place, in order to stay in line with the coming U.S. rate cuts.
The day before, US House Republicans unveil three-month stopgap Bill to avert shutdown
Yesterday, China cuts rate...
China's central bank unveils most aggressive stimulus since pandemic
https://www.reuters.com/world/china/china-unveils-broad-stimulus-measures-revive-economy-2024-09-24/
China launchs new monetary policy tools to support stock market
China PBOC injects CNY 460B Via 14-day Reverse Repos at 1.85% Vs Prior 1.85%
China Banks approved 1.43T Yuan "White-List"property Loans
China PBOC says RRR Cut to release 1T Yuan of Liquidity
China plans at least 500B Yuan of Liquidity support to Stocks
Remarks from Analysts:
Changes in Global Monetary Policy cut Yuan Depreciation Pressure; but Now appreciation pressure on Yuan due to Global Rate Cuts
My Remarks:
China announced the stimulus package yesterday. This doesn't come as coincident, and I believe the China Govt had also been waiting for the best time to launch their new Monetary Policy to hedge against the first U.S. rate cut announced by FOMC last week.
Utimately, I feel the push fastor behind the above are mainly based on Chinese Yen starting (renminbi) to appreciate against weaker USD. And if the U.S. rate will likely be cut further, the situation may not be the same as before. Investors need to understand to trade U.S., will surely face more risks than before.
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