No let-up on PBOC interest rate / RRR cut speculation

Yesterday we got the monthly loan rate setting from the People’s Bank of China 

  • Unchanged for the 19th consecutive month. 

Its unleashed a flurry of tips for what the PBOC could do next, this from Monday US time:

And now this morning from Chinese media –  Economic Information Daily says the PBOC is unlikely to cut the MLF rate this year. Which makes sense, time is running out! 

Meanwhile, referring to the People’s Bank of China’s most recent quarterly report on its monetary policy:

  • the report left out a reference to how the central bank would not engage in large-scale, flood-like stimulus

Response from:

  • Nomura: “In our view, these deletions represent an official change to the PBoC’s policy stance and sets the stage for more decisive monetary and credit easing”
  •  Macquarie: “This time, the removal of the phrase sets the stage for a step-up in monetary easing”
Yesterday we got the monthly loan rate setting from the People's Bank of China 

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