The speech from Lowe, Governor of the RBA, is titled:
- Inflation, Productivity and the Future of Money
Be on the alert for comments from Lowe on if a 75bp rate hike at the next monetary policy meeting of the Bank (on August 2) is being considered. Current consensus is for a 50bp rate hike at this meeting.
Also on the agenda is the People's Bank of China's one- and five-year Loan Prime Rate (LPR) setting for the month. Last Friday the PBOC rolled over a maturing one-year medium-term lending facility (MLF) at an unchanged rate of 2.85%. Changes to the MLF rate are a key indicator of changes to the rate on these lending benchmark loan prime rates (LPR). LPR's are (loosely) pegged to the medium-term MLF policy rate. Given the MLF was rolled at an unchanged rate expectations are the LPRs will also remain unchanged:
- The 1-Year Loan Prime Rate is currently at 3.70%
- The 5-Year Loan Prime Rate is at 4.45%
