I posted earlier on: China analyst argues PBoC should lower rates - for the sake of the real economy
As a heads up:
- There is 265bn yuan of MLF maturing today
- I suspect the PBOC will roll these, but at what rate? In that post linked above the analyst is arguing for a reduction in the rates on MLF, but maybe not just quite yet.
- Other analysts I have seen suggest it could be after the Fed meeting this week .
- The current MLF rate is 3.3%
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Rate reductions would be read as further stimulus from China and would translate as a positive input for the AUD.
