AUD and NZD marked lower after the People's Bank of China rate cut is less than expected

<p><a href="https://www.forexlive.com/centralbank/pboc-loan-prime-rates-lpr-cut-1-year-345-prior-355-5-year-42-prior-420-20230821/" target="_blank" rel="follow">China cut one-year LPR </a>by 10 bp to 3.45% from previous 3.55%</p><p>And the Five-year LPR remains unchanged at 4.2%.</p><p>The property sector is as good as dead and the People's Bank of China is instructing banks to lend like crazy:</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>And yet the Bank gets timid with rate cuts. There is no doubt that deleveraging is a Chinese policy goal, but its catastrophic progress is surely a little out of hand? People's Bank of China unconcerned though.</p><p>AUD/USD marked lower on the disappointment:… but by the time I took the screenshot its bounced to be not much changed. </p>

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