With the Fed looking to cut rates despite low unemployment, China may take pro-active snd pre-emptive measures like granting loans at lower rates to small and medium-sized enterprises. The possibility of the People's Bank of China (PBOC) cutting its benchmark interest rate cannot be ruled out as well, according to a commentary piece by Global Times, an English-language Chinese newspaper under the People's Daily.
The report also says that it is highly unusual for the Fed to lower interest rates at a time when the economy has been growing quickly and unemployment is low.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.