Coming up today is the People's Bank of China 1 and 5 year Loan Prime Rate setting.
2330 GMT Australia - Westpac leading indicator for sept
prior -0.27% m/m
2350 GMT Japan trade balance for September
expected Y -519bn, prior Y -637bn
Trade balance adjusted
expected Y -108bn, prior Y -272bn
Exports
expected +11.0% y/y, prior +26.2%
Imports
expected +34.4% y/y, prior +44.7%
0130 GMT China Loan Prime Rate monthly setting
1 year LPR expected 3.85%, prior 3.85%
5 year LPR expected 4.65%, prior 4.65%
these benchmark rates have been unchanged for 17 months
Reuters polling shows 19 or 20 analysts asked expect no change in either the one or five years rates. The People’s Bank of China (PBOC) left the interest rate on its medium-term loans (MLF) unchanged last week. The MLF interest rate sets a baseline for commercial bank LPR rates. If there is to be a cut it would most likely be to the 5 year to encourage housing demand, if Chinese authorities assess this is needed.
0130 GMT from China will also bring house price information for September
- prior 4.2% y/y
- fears prompted by Evergrande (and other property sector firms) turmoil have seen some withdrawal of buyers which is likely to weigh on house price gains for this month
