Markets Climb on Chinese Stimulus Hopes
Risk appetite is rebounding across the currency markets after Chinese authorities unveiled a raft of stimulus measures designed to boost growth and reinvigorate market sentiment. In a carefully-choreographed announcement, the People’s Bank of China cut its benchmark seven-day reverse repurchase rate and lowered the amount of cash that banks need to hold in reserve by 50 basis points, freeing up money for lending. It said it would also cut the interest rate payable on existing mortgages and lower down payments on purchases of second homes. And lending facilities equivalent to almost $70 billion dollars will be made available to brokers...