Forecast for two 15bp rate cuts to come from the People's Bank of China on Monday

<p>I posted earlier on the Loan Prime Rate setting coming up from the People's Bank of China on Monday:</p><ul><li><a href="https://www.forexlive.com/centralbank/peoples-bank-of-china-is-expected-to-cut-loan-rates-next-week-20230818/" target="_self">People's Bank of China is expected to cut loan rates next week</a></li></ul><p>This via ING, expecting 15 cuts to both the 1- and 5-year LPR:</p><ul><li>The People's Bank of China (PBoC) surprised the market on Tuesday with an unexpected cut to its one-year medium-term lending facility loan rates by 15bp to 2.5%. This is the steepest cut seen in three years. The 7-day reverse repo rate was also lowered by 10bp to 1.8%.

This was likely carried out in response to disappointing activity and aggregate finance data. </li><li>The 5-year and 1-year LPR are likely to follow suit with a 15bp cut.</li></ul>

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