Humpty Dumpty China?

China's central bank cut interest rates on 23 October 2015  for the sixth time in less than a year, and it again lowered the amount of cash that banks must hold as reserves .   The PBOC said on its website that it was lowering the one-year benchmark bank lending rate by 25 basis points to 4.35 per cent, effective from October 24. The one-year benchmark deposit rate was lowered by 25 basis points to 1.50 per cent.

The reserve requirement ratio (RRR) was also cut by 50 basis points for all banks, taking the ratio to 17.5 per cent for the biggest lenders, while banks that lend to agricultural firms and small companies received another 50-basis-point reduction to their RRR.

Action  by PBOC

Nov. 21, 2014 –PBOC cuts rates by 40 basis points.

Nov. 30, 2014 –PBOC publishes draft rules on deposit insurance.

Dec. 28, 2014 –PBOC changes rules on loan deposit requirements to ease liquidity pressure.

Jan. 22, 2015 –PBOC reintroduced reverse repos to meet cash demand ahead of Chinese New Year.

Feb. 4, 2015 – PBOC cuts reserve requirement ratio by 50 basis points.

Feb. 28, 2015 – The PBOC cuts rates by 25 basis points.

Apr. 19, 2015 - PBOC cuts the reserve requirement ratio by 100 basis points.

May 10, 2015 –PBOC cuts rates by 25 basis points.

Jun. 24, 2015 –PBOC scraps the loan deposit ratio cap.

Jun. 27, 2015 –PBOC cuts rates by 25 basis points and the RRR by 50 basis points for select banks.

Jul. 5, 2015 – IPOs are suspended, major brokers launch a market stabilization fund and the PBOC announces liquidity support for margin finance.

PBOC provides liquidity to China Securities Finance Corp. (CSFC), an organization that makes loans to qualified securities firms for margin on-lending to stabilize the market

Aug. 11 2015 - PBOC devalues the yuan. Mid August  PBOC conducts biggest open-market weekly liquidity additions since February

Aug. 25 2015 The People's Bank of China cut its benchmark one-year lending rate by 25bps to 4.6 percent  decided to lower reserve requirements for banks The PBOC had thus  cut benchmark lending and saving rates for the fifth time since November 2014 and lowered banks’ required reserve ratio by half a percentage point after the stock market recorded the steepest falls since 1996.

Humpty Dumpty sat on a wall,

Humpty Dumpty had a great fall;

All the king's horses and all the king's men

Couldn't put Humpty together again.