On Wednesday, the People’s Bank of China (PBOC), the Chinese central bank, announced that it lowered the interest rate on 14-day reverse repos to 2.65% vs. 2.70% previous.
However, the PBOC maintained the 7-day reverse reports at 2.5%. it sells 150 billion Yuan of 14-day reverse repos at 2.65%.
On today’s PBOC’s operation, analysts at Capital Economics noted: "It's a sign that the PBOC remains in easing mode and may be just enough to convince banks to make another 5bp cut this Friday to the Loan Prime Rate (LPR), the benchmark upon which loans are now priced."
The Chinese stocks trade with moderate gains while the Chinese yuan and Aussie are under pressure amid looming trade deal risks.
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