China's Cabinet: Will not resort to flood-like stimulus

Eren Sengezer FXStreet

China's cabinet said on Wednesday that it will use timely cuts to the reserve requirement ratio (RRR) to support the real economy, Reuters reported, citing Chinese state media.

Additional takeaways

"Will not resort to flood-like stimulus."

"Will keep monetary policy stable, increase policy effectiveness."

"Will help lower financing costs for the real economy."

Market reaction

These comments don't seem to be having a noticeable impact on market sentiment. As of writing, the S&P Futures were up 0.2% on a daily basis while Nasdaq Futures were gaining 0.6%.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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