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Loong: Beijing will blink again - interest rate cut on the cards

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Cutting interest rates in China is the "next logical step" says Pauline Loong, Managing Director of Asia Analytica Research. Pauline correctly predicted the latest dose of stimulus: fresh bank reserve rate cuts this week, aimed at reviving a slumping economy.

Now Pauline argues that Beijing will cut interest rates further and soon. Any delay is due to disagreements over the size of the cut, with Chinese leaders having access to economic data which the markets can't access. 

Pauline outlines the next steps she expects to be taken as the world's largest economy slows further and gives us her thoughts on how Western markets will react.