As Marc Chandler mentioned in Friday's Marc to Market:
"Meanwhile, there is speculation that after a little more than a year and a half, the PBOC could cut the 1-year and 5-year loan prime rates (3.85% and 4.65%, respectively) on Monday."
The yuan is a few ticks weaker, 6.3782 +0.0034 but as we've said, they face an almost "insoluble" task.
From CNBC, Dec 19 2021, 9:03 PM EST:
- The People’s Bank of China lowered the one-year loan prime rate to 3.8%, down from 3.85%.
- The five-year loan prime rate remained unchanged from the prior month at 4.65%.
- The last time the central bank cut the one-year and five-year LPR was in April 2020, according to data from Wind Information.
China’s central bank cut a benchmark lending rate on Monday for the first time since April 2020, during the height of the coronavirus pandemic in the country.
The People’s Bank of China lowered the one-year loan prime rate to 3.8%, down from 3.85%. The five-year loan prime rate remained unchanged from the prior month at 4.65%.
The last time the central bank cut the one-year and five-year LPR was in April 2020, according to data from Wind Information.
The LPR affects lending rates for corporate and household loans. Last week, the central bank’s cut to the amount of cash banks need to have on reserve took effect, marking the second such move this year....
....MUCH MORE
And more to come.
