Beijing surprised the markets cutting interest rates first time since 2015. China cut rates on seven-day reverse repurchase agreements only 5 basis points to 2.5%, but no one expected this step from central bank.
Easing the monetary policy is another sign that central bank needs to support economy by helping banks to borrow cheaper money from central bank.
Another view on the cutting can be that talks between United states and China are not going well as leaders of mentioned.
Is it sign that we can expect cutting interest rates in USA or rising amount of QE in Europe? We will see.