Earlier this week ANZ was out with a forecast for a 50 basis point cut in the RRR, or a targeted MLF.
(MLF is a medium term lending facility - basically a 6 month or one year loan to banks to encourage lending to business).
We'll get the People's Bank of China reference rate setting for the onshore yuan in a little under an hour's time and, if there is to be a RRR cr MLF that should follow very soon thereafter.
Good work from ANZ on putting their forecast out there. I would caution though that we do see such forecasts from time-to-time from various sources and most of them do not pan out. There are expectations of a cut from the PBOC so perhaps today is the day. Stay tuned!
