Goldman Sachs expect 15bp rate cuts from the People’s Bank of China today

The People’s Bank of China will be cutting loan prime rates today, from earlier:

• Economic calendar in Asia – People’s Bank of China rate decision due

Last week we had rate cuts from the People’s Bank of China:

• People’s Bank of China set MLF rate at 2.5%, big cut from prior 2.65%
• The People’s Bank of China cut the reverse repo rate from 1.9% to 1.8%.
• ICYMI: China with three rate cuts in one day to try and bolster the economy

ING expect 15bps:

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

Goldman Sachs, too are 15bp cuts to the LPRs. Current LPR rates are:

• 3.55% for the one year
• 4.20% for the five year

Barclays is also at 15bp cuts.

If we get 15bp rate cuts the one year will move to 4.2%, a new low.

Earlier news from China:

• Weekend – the PBOC met with bank executives and told lenders, again, to boost loans

The PBOC decision is due at 0115 GMT, which is 9.15 pm US Eastern time.

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