The Chineze Yuan (CNH) edged down after the People’s Bank of China (PBOC) unexpectedly cut the seven-day reverse repo rate, BBH FX analysts note.
“CNH edged down after the People’s Bank of China (PBOC) unexpectedly cut the seven-day reverse repo rate 10 bp to a historic low of 1.70%. The PBOC is trying to shore-up sluggish Chinese economic activity.”
“However, until China deals with its huge debt overhang (total debt is more than 300% of GDP), the country looks set for weaker growth in the years ahead.”