Another rate cut from the People’s Bank of China, 14 day reverse repo to 1.95% from 2.15%

From China so far today:

• Chinese state-linked developer Sino-Ocean has suspended payment on all its offshore debts
• PBOC sets USD/ CNY reference rate for today at 7.1786 (vs. estimate at 7.2849)
• People’s Bank of China set MLF rate at 2.5% (expected 2.5%, prior 2.5%)
• China August new home prices -0.3% m/m (prior month -0.2%)

Buried in amongst that lot (the reference rate post) is the news of another rate cut from the Bank:

PBOC sets 14 day RR rate at 1.95% vs. 2.15% previously

• we haven’t had a 14-dayer in many months

Still on the way from China is the economic data for August:

• Economic calendar in Asia – Friday, 15 September 2023 – China economic data for August

The PBoC cut its RRR yesterday, which may be a sign the data will not be as good,as expected:

• China’s PBOC have been busy: Cut its RRR, ‘asked’ banks not to buy dollars. Panicking?

Pan Gongsheng is People’s Bank of China governor

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