BEIJING – The U.S. Federal Reserve’s emergency interest rate cut gives China’s central bank much more leeway to lower its own rates, and boost the internationalization of the yuan, analysts said.
In response to concerns about the new coronavirus’ economic impact, the Fed surprised markets during the New York trading session on Tuesday with a half percentage-point rate cut. It came two weeks before a scheduled meeting. The last time the Fed took similar emergency action was during the financial crisis in 2008.
