While analysts generally believe China’s latest cuts would release more liquidity into the renminbi market, it is still too early to get excited, CT warns.
China’s central bank has not given any indication it will widen the renminbi trading band, as the cabinet instructed last week, which has disappointed market participants.
Financial sector reform is a key component of China’s long-term economic plan to shift the country to a socialist market-driven system. Interest rate liberalisation is a critical element of that reform and it is ...