June 7 (Bloomberg) -- 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.’’
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