I coughed coffee on my keyboard when I saw this from Adam over the weekend:
- Next week doesn’t start until Thursday.
On Tuesday in the Asian time zone, we have the People’s Bank of China interest rate setting day, as well as the minutes of the latest Reserve Bank of Australia meeting.
The People’s Bank of China cut interest rates in July, surprising some in the market. The People’s Bank of China cut repo rates on July 22:
- The People’s Bank of China announced cutting the 7-day reverse repurchase rate to 1.70% from 1.80%.
- At the same time, the bank reduced collateral requirements for medium-term lending facility loans.
On the same day they cut the LPRs:
- China cuts key interest rates on one-year and five-year loans by 10 basis points each
Then three days later they made a surprise and shocking cut to the interest rate on the medium-term lending facility:
- People’s Bank of China cuts one-year medium-term lending facility rate to 2.3%
Tomorrow is the day for the lending rate (LPR) to be set again. No cut is expected, but nothing is ruled out.
The minutes of the RBA’s August meeting will also be released tomorrow:
- Reserve Bank of Australia leaves interest rate unchanged at 4.35% as expected
- RBA Governor Bullock: Inflation progress has been slow for a year now
- RBA Governor Bullock: Rate cuts not on agenda in near term
Reserve Bank of Australia Governor Bullock took a hawkish stance on Friday:
- RBA Governor Bullock says it’s ‘premature’ to consider cutting rates to help the Australian dollar
(note
I Don’t Believe It: Aussie traders, here’s what’s really going on with the RBA. November Meeting Live
)
This article was written by Eamonn Sheridan on www.forexlive.com.
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