Chicken Little would have been in his element today. The sky may not be falling, but plenty else is, be it latest Eurozone inflation prints and bond yields, incoming US economic data or China’s Reserve Requirement Ratio. The latter was cut by 50bps to 17% for big banks after we went home last night. Given fears that RRR cuts would compound pressure on capital flows, making it harder for the authorities to keep the RMB relatively stable, the move does hint that these pressures are abating. Either that or we will shortly see a...
