China cuts interest rates

Please click the link below to view Shane Oliver's views on the impact of China cutting interest rates.

Key points are :

  • For the first time since 2012 China has cut interest rates.  Borrowing costs have been too high in China so rate cuts will help support economic growth. Expect more interest rate cuts ahead.
  • The rate cut is positive for Chinese shares which remain relatively cheap.
  • China's rate cut highlights that global monetary conditions are still easing with monetary easing in Japan, Europe and China taking over from the end of quantitative easing in the US.
  • Chinese easing is also positive for commodities and Australian shares.