There was a record turnaround between the time of China hinting at an RRR cut yesterday and delivering it.
The China Securities Daily yesterday said that an RRR cut could come before year-end. It certainly did with the cut coming just hours later.
Will there be an encore?
Today the front page of the China Securities Times has an article saying the Loan Prime Rate is likely to be cut. There's been on-and-off speculation about the 1-year LPR, which is at 3.85%.
The PBOC has put it forward as its main policy lever and the next decision is Dec 19. It's been steady since it was lowered at the start of the pandemic.
Today China reported 94 new covid cases compared to 61 a day earlier. No doubt officials are sweating about a variant that could me twice as infectious as delta.
