Standard Chartered’s Henderson Says Rate Cut Suggests Weak Data

Callum Henderson, global head of currency research at Standard Chartered Plc in Singapore, comments on China’s decision to cut interest rate for the first time since 2008.

“This is a major move and in line with the message from the State Council that a more pro-growth strategy will be the focus.

‘‘Coming at such a key time ahead of Bernanke’s testimony, the G20 and the FOMC, this is an important message that China is supporting domestic growth and doing its part on a global stage.

‘‘However, it also suggests May data will be very weak, confirming the extent of the slowdown and the concern of the authorities. The knee-jerk market reaction is risk positive, but reassessment may keep investors cautious and selective.’’

To contact the reporter on this story: Fion Li in Hong Kong at fli59@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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