While the PBOC said the move isn't a renewed stimulus push, the breadth of the 50 basis-point cut to most banks reserve ratio requirement came as a surprise. ; Data on Thursday is expected to show growth eased in the second quarter to 8% from the record gain of 18.3% in the first quarter, according to a Bloomberg poll of economists, according to The Japan Times. Key readings of retail sales, industrial production and fixed asset investment are all set to moderate too. The changing outlook was underscored Friday when the People's Bank of China cut the amount of cash most banks must hold in reserve in order to boost lending. The PBOC's swift move to lower banks' RRR is one way of making sure the recovery plateaus from here, rather then stumbles. But economists say the softening has come sooner than expected and could now ripple across the world. The economy was always expected to descend from the heights hit during its initial rebound and as last year's low base effect washes out. (news.financializer.com).
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