Central Banks Cut Interest Rates In A Row, And Financial Pressure On China's Textile Industry Is Expected To Ease.

Yesterday, Europe and Asia

Loosening monetary policy and lowering interest rates in order to stimulate the weak global economy.

What investors expected was that the PBoC lowered the benchmark lending rate for one year to 0.31 percentage points to 6%, indicating that the economic slowdown has spread beyond Europe.

As expected, the European Central Bank (ECB) lowered its dominant interest rate by 25 basis points to 0.75%, the lowest point in history.

The Bank of England (Bank of England) once again launched the money printing machine, and injected another 50 billion pounds into the British economy. So far, the Bank of England has printed a total of 375 billion pounds.

When central banks acted, global business surveys showed that economic growth this year was significantly weaker than expected.

In July, the global integrated purchasing managers' index (PMI) of Morgan and JPMorgan was reduced to 50.3, the lowest since 2009.

The ECB's move has not boosted confidence in European assets. After the summit last week, the rise of European financial assets has now ended.

At the close of London, the euro has fallen below the 1 euro to US $1.24 against the US dollar, or about 1% on that day.

Spain's ten year borrowing cost increased by 0.4 percentage points to more than 6.75%, returning to last week's dangerous level.

Mario Draghi, the European central bank governor, said in Frankfurt (Frankfurt) that interest rates cut by central banks and the eurozone respectively showed a weak growth. "Uncertainty is rising, putting pressure on people's confidence and emotions," Mario Dragi said.

The ECB insists that the 17 member countries of the eurozone have agreed to cut interest rates, and the ECB will also reduce the overnight deposit rate to zero for the member states' banks.

This will provide greater incentives for banks with larger deposit bases to facilitate overnight lending to other banks in the eurozone.

The Danish Central Bank went further, reducing its deposit interest rate to a negative value for the first time, charging an annual fee of 0.2% for deposits.

Interest rates in the UK have fallen to their lowest level in more than 300 years. The Bank of England has chosen third quantitative easing measures, and blamed the recent recession in the British economy for the two recession.

Last night

It has decided to reduce the benchmark interest rate for Renminbi deposits and loans of financial institutions since July 6, 2012.

The one-year deposit benchmark interest rate of financial institutions has been reduced by 0.25 percentage points, and the one-year lending benchmark interest rate has been reduced by 0.31 percentage points.

Analysts pointed out that export tax rebate policy is known to have a great impact on the textile industry, and the effect of interest rate cuts on the textile industry is greater than that of the export tax rebate policy.

At present, capital flows are tight, and interest rate cuts can effectively alleviate the financial pressure of the textile industry.