China surprised markets by lowering a key short-term policy rate and its benchmark lending rates on Monday, in efforts to boost growth in the world's second-largest economy.
Minutes later, China cut benchmark lending rates by the same margin at the monthly fixing.
Following the rate cuts, China's yuan dropped to a near two-week low of 7.2750 per dollar before paring some losses.
He expects more rate reductions in China after the Fed enters its rate cut cycle.
China's rate cuts are aimed at "strengthening counter-cyclical adjustments to better support the real economy," the PBOC said in a statement.
Persons:
Larry Hu, Ju Wang, Zhang Zhiwei, Pan Gongsheng
Organizations:
People's Bank of, People's Bank of China, Macquarie, Greater China FX, BNP, Federal Reserve, Xinhua, Fed
Locations:
People's Bank of China, Beijing, China