August 18, 2024 at 10:25PM
I coughed coffee all over my keyboard when I saw this from Adam over the weekend:
Next week doesn’t start until Thursday
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:
China cuts 1 and 5 year loan prime rates by 10 basis points each
Then they followed up three days later with a surprise, shock, cut to their Medium-term Lending Facility (MLF) rate:
People’s Bank of China reduces 1 year Medium-term Lending Facility (MLF) rate to 2.3%
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:
RBA Governor Bullock’s comment that its ‘premature’ to think about rate cuts helping AUD
(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.
