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KGI Asia’s Kwong Says Rate Cut Was Expected on Europe Turmoil

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June 7 (Bloomberg) -- Ben Kwong, chief operating officer at Hong Kong-based KGI Asia Ltd., comments on China’s decision to cut interest rates for the first time since 2008.

“The rate cut is long awaited because of the continuing turmoil in Europe and also the signs of further slowing of the Chinese economy.”

“The market already expected the major countries will have this kind of a stimulus package to be introduced to boost the market sentiment.”

“This is the first time they have started the downward interest rate cycle. I don’t think China will act aggressively, it will be gradual.”

“I think in six months down the road, we’ll see another one or two quarter percent rate cuts and maybe some other measures, like the continued reduction of the reserve ratio.”

To contact Bloomberg News staff for this story: Eleni Himaras in Hong Kong at ehimaras@bloomberg.net

To contact the editor responsible for this story: Nicholas Wadhams at nwadhams@bloomberg.net