📝Early PBoC RRR Cut Not A Good Sign Ahead Of Data: UBS Strategy

It is unusual for the People's Bank of China to cut the reserve requirement ratio an a Thursday, as it did today. The PBOC mostly acts on Fridays, after the market closes, and on weekends. Other than today, there has only been one exception over the past five years: on January 1„ 2020, (a Wednesday). China will release its August data including retail sales, industrial production and property sales on Friday. It's not a good sign for the PBoC to act before a data release, as it suggests deep concern about the economy.

- UBS Strategy