I coughed coffee all over my keyboard when I saw this from Adam over the weekend:
On Tuesday from the Asia time zone we have rate-setting day from the People’s Bank of China and also minutes from the most recent Reserve Bank of Australia meeting.
The PBoC cut rates in July, surprising some in the market. People’s Bank of China cut repo rates on July 22:
- PBoC announces cut to 7-day reverse repo rate to 1.70% from 1.80%
- at the same time the Bank lowered collateral requirements for medium term lending facility loans
On the same day they cut LPRs:
Then they followed up three days later with a surprise, shock, cut to their Medium-term Lending Facility (MLF) rate:
Tomorrow its Loan Prime Rate (LPR) setting day again. No cut is expected, but nothing is off the table.
Tomorrow also brings Reserve Bank of Australia minutes from the August meeting:
- RBA leaves cash rate unchanged at 4.35%, as expected
- RBA governor Bullock: Inflation progress has been slow for a year now
- RBA governor Bullock: A rate cut is not on the agenda in the near-term
On Friday Reserve Bank of Australia Governor Bullock took the hawkish takc:
(ps.
I don’t believe her: AUD traders, here’s what’s really happening with the Reserve Bank Australia. Nov meet live
)
This article was written by Eamonn Sheridan at www.forexlive.com.