The move comes as global central banks, from Japan to Europe to the U.S., are flooding financial markets with cash through so-called monetaryeasing, andChina is an attractive destination for all of that investment potential.
Interest rates across advanced economies will be kept at record lows while emerging markets like Brazil andChina will engage in fiscal andmonetaryeasing.
U.S. retail sales data, industrial output in Chinaand the euro area, the ongoing Spanish banking crisis and possible further monetary policy easing in Japan will all be overshadowed by the Greek elections, said Nomura Securities analysts in a 16 page report on Friday.
Today the market expects 55 basis points of easing as European contagion fears escalate andChina maintains its death-grip on inflation through ever-firmer monetary policy.