J.P. Morgan Sees Major Upside for Prysmian as Optical Fiber Prices Surge 
Fed’s Anna Paulson Signals Rates Could Stay Higher Longer Amid Inflation Risks 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
BOJ Signals Possible Rate Hike as Middle East Tensions Fuel Inflation Concerns 
Indonesia Passes New Central Bank Law, Raising Investor Concerns Over Policy Independence 
Senegal Appoints Economist Ahmadou Al Aminou Lo as Prime Minister Amid IMF Debt Crisis 
Trump Faces Pressure as Fed Chair Kevin Warsh Takes Over 
ECB Warns Euro Zone Inflation Will Keep Rising Despite Strait of Hormuz Reopening 
Indian Government Bonds Seen Opening Steady Ahead of RBI Policy Decision 
Jerome Powell Warns Against Politicizing the Federal Reserve, Defends Democratic Institutions 
Gold Cracks $4,500: Iran-Fed Double Whammy Sends Bullion into Bearish Freefall Toward $4,000 
RBI Hits Pause as Geopolitical Storm Clouds Gather 
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.
