della seriE ma quanta Droca ci sara in circolazione? se stanno attacca anche ala Polonia ed alla Turkia della serie che ciaVete FIFA che il QE sia solo il 20%
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EUR GOVTS: Close - PBoC cuts RRR, whose next?
LONDON, Feb 4 (IFR) -
* PBoC joins growing list of CB surprises with RRR cut
* Focus shifts from whose next to how much easing
* Greece looks for clarity on ECB funding beyond Feb 28
* Mar Bund correction extends modestly
* Peripheralyields 4-8bps lower
* DNB/SNB FX intervention creates demand for eurozone bonds
The PBoC has finally followed last year's rate cut with an aggressive 50bps cut
on the reserve requirement ratio (RRR). The timing was a surprise but it was
expected that the PBoC would ease policy in Q1 2015. The move is notable as
there were elements of broad easing as well as targeted easing as additional
easing was delivered for banks lending to certain sectors. Responsible lending
remains an objective for policymakers not wanting to return to the old ways of
achieving growth at any price.
The RRR cut is also an attempt to counter any reduction in liquidity due to the
fact that FX reserves are no longer rising. Coming ahead of the Lunar New Year
it alsoreduces the need for other fine-tuning measures. The surprise easing
from many central banks including the PBoC today confirms the signal of softer
growth that has been evident from the decline in commodity prices and lower bond
yields. This is thefirst RRR cut from the PBoC since May 2012, and a further 50
bps cut is likely in May.
There is now a very short list of candidates that will potentially ease further
including Turkey and Poland.
But attention is now shifting to how much stimulus
will