PBoC cut fails to impress but more action on the cards

People's Bank of China
The People's Bank of China

The People's Bank of China (PBoC) cut its headline interest rate for the first time in more than two years today, but economic commentators were underwhelmed.

The PBoC cut its benchmark one-year lending rate by 40 basis points to 5.6%, and lowered its benchmark deposit rate 25bp to 2.75%. At the same time, however, the central bank broadened its tolerance band around the deposit rate, meaning it may not actually change at all.

Xiao Geng, a senior fellow at the Fung Global Institute and professor

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