The Chinese Central bank lowered its base interest rate so randomly today. They lowered its key interest rate to 2.75% from 2.85% today.
Two reasons, one is the sluggish economic situation because of COVID lockdowns and the second one would be the possible big collapse in the Chinese monetary borrowing system.
The first reason would be an acceptable and understandable one. If the second reason is the main cause of today’s random rate cut, it would be a whole different story.
The global market sensed this strange Chinese act and reacted quickly today.
Global commodity markets collapsed today. The crude oil market fell more than 3%, the Brent oil futures downed 3.1% and ended at $91.10 per barrel.
US Dollar Index jumped up 0.8%, ending at 106.51 points today.
Global investment money is gathering into the US equity market once again, US stocks market jumped up today.
