The Fed's possible 25 bps rate cut......>

CHINA PRESS: The Fed's possible 25 bps rate cut should only be a preemptive one

to deal with the U.S.'s current low inflation and uncertainties over the

external environment and not the start of a rate cutting cycle, the China

Securities Journal in a commentary on Tuesday, noting some ammunition may be

needed at a future date. From China's perspective, there was no need for the

PBOC to follow with a cut, as economic fundamentals, as well as both  monetary

and FX policies, are relatively stable, the paper said. A widening of the rate

differential would also help stabilize the yuan, even if the dollar index is

inflated, the paper added.