China rates going lower

BEIJING: The tide of capital is going out in China and many boats, in Chinese ports or not, will settle lower in the water in consequence.
China, somewhat unexpectedly, cut monetary policy yet again over the weekend, the third time in recent months it has moved to ease conditions.
This makes reasonable sense given China’s rapidly slowing growth and the concurrent movement of capital out of China. Still, it looks as if the yuan, on a slow-moving peg against the dollar, may be headed lower in value.
That’s stimulative for China but will spread the pain, in the form of weak demand and very low inflation, elsewhere.
To be fair, China is far from alone in playing this game, what with the ECB embarking on quantitative easing and Japan in the midst of a currency depreciation and asset-buying plan.