According to the Chinese news outlet Global Times, China’s central bank (PBOC) today said that reports claiming that it will slash the benchmark borrowing and lending rates on August 10 are false. The bank has reportedly reported this rumour already to the police.
Although this headline suggests that the bank won’t use interest rates to devalue yuan, it doesn’t seem to be having an impact on the market sentiment. At the moment, the 10-year US Treasury bond yield is down more than 5% on the day and the S&P 500 Futures is losing 0.25% to suggest that Wall Street’s main indexes are unlikely to start the day in the positive territory.
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