On Friday, China executed its sixth interest rate cut of the year in an attempt to step up its policy of monetary easing. It is hoped that this cut will go some way to reduce the chances of deflation and economic slowdown, as the government prepare to face China’s slowest annual growth in 25 years! The recent drop in manufacturing and construction for the country has failed to be offset by consumption. However, despite all this negativity, the Chinese Yuan was relatively unaffected in the market and actually gained 0.25% against the sterling.
Later this week we may also see the Reserve Bank of New Zealand cut its interest rate to stem it recent appreciation.
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