Economic calendar in Asia Tuesday, 20 June 2023 – China interest rate setting, LPR day

Another rate cut is expected from China today. Last week we saw the People’s Bank of China cutting three separate policy rates:

• PBOC 1 year MLF rate cut to 2.65% (prior 2.75%), as widely expected
• ICYMI – People’s Bank of China rate cut overnight (that’s two rate cuts in one day)

And there was other stimulus, and more is expected:

• China cut the retail prices of gasoline and diesel from Wednesday, the 6th cut this year

• China reportedly considering broad stimulus package to bolster economic support
• China has been holding ‘urgent’ meeting with business leaders on boosting growth

• China’s State Council considering various macroeconomic policies to boost demand

Analysts are wary, though, that stimulus will be too little:

• More from Goldman Sachs – reasons for slashing their China growth forecast

• ICYMI – Nomura slashes its forecast for China’s 2023 GDP growth to 5.1% from 5.5%
• UBS revised down its China 2023 GDP growth forecast to 5.2%, from 5.7% previously

Anyway, back to today, the PBOC is setting Loan Prime Rates (LPRs).

Currently LPR rates are:

• 3.65% for the one year
• 4.30% for the five year

3.55% and 4.20% are expected, but a slightly deeper cut would not be too much of a surprise.

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Also up today are 3 events from the Reserve Bank of Australia. I posted a heads-up preview to these here:

• Yield curve inversion signals Australia heading towards recession, but RBA to hike further

This
snapshot from the ForexLive economic data calendar, access
it here.

• The
  times in the left-most column are GMT.
• The
  numbers in the right-most column are the ‘prior’ (previous
  month/quarter as the case may be) result. The number in the column
  next to that, where there is a number, is the consensus median
  expected.

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