Forecast for two 15bp rate cuts to come from the People’s Bank of China on Monday

I posted earlier on the Loan Prime Rate setting coming up from the People’s Bank of China on Monday:

This via ING, expecting 15 cuts to both the 1- and 5-year LPR:

  • The People’s Bank of China (PBoC) surprised the market on Tuesday with an unexpected cut to its one-year medium-term lending facility loan rates by 15bp to 2.5%. This is the steepest cut seen in three years. The 7-day reverse repo rate was also lowered by 10bp to 1.8%. This was likely carried out in response to disappointing activity and aggregate finance data.
  • The 5-year and 1-year LPR are likely to follow suit with a 15bp cut.

This article was written by Eamonn Sheridan at www.forexlive.com. Source