ICYMI – China’s benchmark lending rates were held steady: 1 yr LPR @ 3.45% 5 yr @ 3.95%

This may have got lost in the mix:

All as expected.

There are some thoughts, well founded, that the People’s Bank of China is still likely to ease monetary policy further

  • more liquidity will be need for China’s banks to purchase government bonds, including the issuance of ultralong special Treasury bonds that started last Friday – these bonds are raising cash for economy-building purposes (stimulus)

On Friday we did have a rate cut from the PBoC:

  • aimed at addressing China’s prolonged property-sector downturn

Other effort will involve local governments buy back unsold homes, lowering down payments for would-be home buyers, and removing the floor on mortgage rates that banks offer clients.

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