RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
Silver Spikes to $62.89 on Fed Cut – But Weekly Bearish Divergence Flashes Caution: Don’t Chase, Wait for the Dip 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
It may prove unwise to rely on People's Bank of China's (PBoC) measures to pop up financial markets. Sell offs already showed signs of reverse before the stimulus was announced. S&P 500 jumped back sharply from 1830 area to trade as high as 1950 yesterday, while Yen pared its massive gain from 116 to 120 area.
While PBoC's stimulus today of 25 basis points rate cut and 50 basis points reserve ratio cut, may help the economy by lowering real interest rates, it is unlikely to prevent financial turmoil in China as well as emerging markets.
It is not just a thought but a lesson from PBoC's recent history of intervention.
- 21st November, 2014 - PBoC cuts rates for first time since 2012. 40 basis points lending rate to 5.6% and 25 basis points deposit rates to 2.75%.
- 28th February, 2015 - 25 basis points lending rate to 5.35% and 25 basis points deposit rates to 2.5%.
- 19th April, 2015 -Reserve requirement ratio cut by 1%.
- 10th May, 2015 - 25 basis points lending rate to 5.1% and 25 basis points deposit rates to 2.25%.
- 27th June, 2015 - 25 basis points lending rate to 4.85% and 25 basis points deposit rates to 2%.
- 25th August, 2015 - 25 basis points lending rate to 4.6% and 25 basis points deposit rates to 1.75%.
Throughout this period of loosening of monetary policy China's benchmark stock index, Shanghai Composite has travelled from 2500 to trade as high as 5200 around and dropped to 2960 area and all that with high level of volatility.
