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Out of options and bracing for impact, Chinese authorities ready for more failure.

Eurodollar University

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The Effect of Interest Rate Cuts on the Economy

Last week they lowered the MLF after reducing the benchmark repo rate. Tonight they're likely to announce the cut to the LPRs. Why do people believe that these interest rate cuts are actually stimulus? Well, as we mentioned in the other article from Bloomberg, economists say it is. And so when you look back through time, lower interest rates correspond with the economy going down like interest rates, not the opposite.

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