May 21, Wednesday

High-Level Voices: 
China's latest LPR was released, with the 1-year rate dropping to 3% and the 5-year rate dropping to 3.5%, both down by 10 basis points, marking the first reduction since October last year.

Overall Sentiment: 
The interest rate cut finally happened yesterday, down by 0.1%, more symbolic than substantial. The six major banks also lowered deposit rates simultaneously, with the one-year fixed deposit rate now below 1%. The trend is clear: China is heading down Japan's path in 1990s, likely witnessing zero or even negative interest rates in the coming years.
Last night, gold prices surged by 1.5%, driven by a sell-off of the U.S. dollar on Monday, which is also tied to the lack of progress in Russia-Ukraine negotiations.