An Important Wrinkle In Chinese Bank Hoarding

By |2019-01-29T19:04:54-05:00January 29th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In theory, it is always so simple. For China, it was intended that RRR cuts are stimulus. By allowing banks to use more of the reserves they’ve built up over the years it is meant to add to overall interbank liquidity. From there, banks flush with RMB supported by robust RMB money markets will lend [...]