The Chinese government seems to have finally concluded that it needs a bigger knife to save its economy. It seems that it will lower rates more boldly and greatly ease lending market conditions.
It seems that the government will somehow resolve the issue of unsold houses that are still unknown nationwide.
In the end, it seems that it has decided to go along with the mega real estate developers, since it was unable to resolve the issue. It remains to be seen whether this decision will improve the Chinese economy or go the other way.
In any case, since China is moving again, the US dollar has fallen to its lowest level against the Chinese yuan in 16 months.
Japan has not been sitting still either. Ahead of the Liberal Democratic Party presidential election, the governor of the Bank of Japan has made another statement. “We will raise interest rates appropriately according to the situation.”
This seems to be another expression of the will to raise interest rates soon. Japan cannot stay still because China is moving.
