- People's Bank of China Governor says yuan has a relatively solid and stable foundation
- ICYMI - PBoC says it will cut rates, but gave no indication of a timeline for when
- People's Bank of China Governor says must support steady recovery of prices, economy
- PBOC sets USD/ CNY mid-point today at 7.0510 (vs. estimate at 7.0495)
- People's Bank of China will soon cut 7-day reverse repo to 1.5% from 1.7%
- People's Bank of China will soon cut reserve requirement ratio by 50bp
- AUD traders heads up - Australian Treasurer Chalmers press conference after RBA
- Morgan Stanley prefers Chinese stocks trading offshore over those listed on the mainland
- Japan Jibun preliminary Sep PMIs: Manufacturing 49.6 (prior 49.8) Services 53.9 (53.7)
- Reserve Bank of New Zealand give a heads up on when Governor Orr is speaking next
- Australian weekly consumer confidence survey hits its highest since January 2023
- Japan - tsunami alert issued after earthquake
- China’s youth unemployment rate hit a fresh high in the latest data
- 3 forecasts for the first RBA rate cut: December '24, February, May '25
- Reserve Bank of Australia meeting today - preview - on hold expected
- UK PM Starmer is speaking on Tuesday - will say tough decisions are needed
- JP Morgan sees US equities higher still - plenty of supportive macro
- 3 reasons there are still higher prices to come for Gold - UBS target US$2700
- Forexlive Americas FX news wrap 23 Sep: S&P Global PMI data mixed but with inflation
- Swiss National Bank meet this week - consensus expectation is for a 25bp interest rate cut
- S&P and Dow industrial average close at record levels
- Trade ideas thread - Tuesday, 24 September, insightful charts, technical analysis, ideas
PBOC governor Pan Gongsheng, NFRA* director Li Yunze, and CSRC* president Wu Qing joined forces for a 9 am (Beijing time) press conference that generated bombshell monetary policy stimulus headlines that were subsequently withdrawn.
The Governor of the People’s Bank of China was reported (erroneously) as saying the Bank had:
- cut the Reserve Requirement Ratio (RRR) by 50bp,
- cut the 7-day Reverse Repo rate to 1.5%, from 1.7%
What the governor actually said was that the Bank will, at some time, make these cuts. He did not offer a firm timeline. The cuts are something the Bank will do, but not right away. Unfortunately the headlines reported the cuts as having been made, which was incorrect. Thankfully ForexLive reported the correct news.
However, the misreporting was seized upon by traders thirsting for stimulus from China, with stocks jumping higher. There has been retracement but Chinese stocks are net higher on the session. AUD/USD also jumped and is now mid-range for the session as I post.
Other measures announced (with no time line) at the Chinese press conference included:
- will cut down payments for 2nd homes
- will cut outstanding mortgage rates for individual borrowers by an average of 0.5%
- will allow funds and brokers to tap PBoC funding to buy stocks
- MLF will be lowered by 0.3%
- LPR will be lowered by 0.2 to 0.25%
The “will allow funds and brokers to tap PBoC funding to buy stocks” garnered much attention. A fund to stabilise equity markets is, of course, bullish for China stocks, but we await more detail on this.
Otherwise news and data flow was fairly light.
Still to come is the Reserve Bank of Australia statement and Governor Bullock’s press conference. The RBA is widely expected to leave the cash rate unchanged today.
And, still more to come, is Bank of Japan Governor Ueda speaking at a meeting with Business Leaders in Osaka (0105 US Eastern time, 0505 GMT).
---
*NFRA is China’s National Financial Regulatory Administration
*CSRC is the China Securities Regulatory Commission
---
Shanghai Composite hourly
