Goldman Sachs expect 15bp rate cuts from the People's Bank of China today

<p>The People's Bank of China will be cutting loan prime rates today, from earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/economic-calendar-in-asia-peoples-bank-of-china-rate-decision-due-20230820/" target="_self">Economic calendar in Asia – People's Bank of China rate decision due</a></li></ul><p>Last week we had rate cuts from the People's Bank of China:</p><ul><li><a href="https://www.forexlive.com/centralbank/peoples-bank-of-china-set-mlf-rate-at-25-big-cut-from-prior-265-20230815/" target="_blank" data-article-link="true">People's Bank of China set MLF rate at 2.5%, big cut from prior 2.65%</a></li><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-china-cuts-rates-data-disappoint-yuan-intervention-20230815/" target="_blank">The People’s Bank of China cut the reverse repo rate from 1.9% to 1.8%.</a></li><li><a href="https://www.forexlive.com/news/icymi-china-with-three-rate-cuts-in-one-day-to-try-and-bolster-the-economy-20230815/" target="_blank" data-article-link="true">ICYMI: China with three rate cuts in one day to try and bolster the economy</a></li></ul><p>ING expect 15bps:</p><ul><li><a href="https://www.forexlive.com/centralbank/forecast-for-two-15bp-rate-cuts-to-come-from-the-peoples-bank-of-china-on-monday-20230818/" target="_blank" data-article-link="true">Forecast for two 15bp rate cuts to come from the People's Bank of China on Monday</a></li></ul><p>Goldman Sachs, too are 15bp cuts to the LPRs. Current LPR rates are:</p><ul><li>3.55% for the one year</li><li>4.20% for the five year</li></ul><p>Barclays is also at 15bp cuts. </p><p>If we get 15bp rate cuts the one year will move to 4.2%, a new low. </p><p>Earlier news from China:</p><ul><li><a href="https://www.forexlive.com/centralbank/weekend-the-pboc-met-with-bank-executives-and-told-lenders-again-to-boost-loans-20230820/" target="_blank" rel="follow" data-article-link="true">Weekend – the PBOC met with bank executives and told lenders, again, to boost loans</a></li></ul><p>The PBOC decision is due at 0115 GMT, which is 9.15 pm US Eastern time.</p>

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