The PBOC has been providing extra funds via open market operations this week and has, in addition, cut the rate on 14 reverse repos (only by 5bp)
Today, due at 0130GMT, we get the LPR fix for the month
I posted earlier on a cut expected:
- for the 1 year, expected 4.1%, prior 4.15%
- for the 5 year, expected 4.81%, prior 4.8%
Survey via Bloomberg.
Reuters, on the other hand, have the consensus expectation at not change:
- near 74% of all participants in the survey predicted no change to the one-year Loan Prime Rate (LPR)
- about one-fourth of all respondents expect a marginal reduction of five basis points in the LPR, though they saw no downward adjustment to the five-year
- "We expect LPR to stay stable in December," said Jacqueline Rong, senior China economist at BNP Paribas in Beijing."Medium-term lending facility (MLF) rate is on hold, while activities data point to signs of growth stabilisation in November. As such, the People's Bank of China is likely to remain patient and preserve its firepower."
Link is here if you'd like more
