On Friday, the People's Bank of China (PBoC) unexpectedly cut interest rates.
According to Reuters, it is most likely a rate cut is not the last.
Exclusive: China ready to cut rates again on fears of deflation - sources
China is ready to further lowering of rates on fears of deflation - sources.
Lowering the rates was the first in more than 2 years, and shows, as noted by Reuters, the change rate of the Chinese leadership.
"The main leaders changed their point of view," - said the chief economist of one of the state-owned banks that participated in the debate on domestic policy. According to him, PBoC has decided to shift its policy towards broadly directional stimulation and open to further lowering of interest rates and reserve requirements.
Many Chinese economists are calling for even more action.
On the one hand, this is positive news for the Australian dollar. Especially in light of the upcoming follow-up.
On the other hand, it may not lead to an increase in AUDUSD because the assumptions are beginning to emerge that he himself Reserve Bank of Australia will soon be forced to lower the rate to somehow compensate for the negative effect of the rapid weakening of the Japanese yen.McAuley NICHOLAS LUDANOV
