A s China’s economy has descended into deflation, the central bank’s lack of urgency has been a source of frustration. Officials at the People’s Bank of China (PBoC) at firs

Chinese stocks and bonds rallied and Asian stocks hit 2-1/2 year highs as Governor Pan Gongsheng announced plans to lower borrowing costs and inject more liquidity into the economy, as well as to ease households' mortgage repayment burden.

China may also cut the RRR further this year by another 0.25 to 0.5% at the appropriate time. The PBOC will also lower the rates for existing mortgages and cut the down payment ratio on second homes to 15% from 25%. The deposit rate will be lowered to “neutralize” the impact on bank margins.