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China Cuts 7-day Repo Rate To 1.70%

CHINA

Headlines have crossed that China has cut the 7-day repo rate to 1.70% from the prior 1.80% (per BBG). This comes after the recent Third Plenum meeting and last week's softer data updates (with Q2 GDP weaker than forecast and retail sales slowing further).

  • Note we have the 5yr and 1yr LPRs coming up later, in just over an hour. The market consensus rests with no change, although there is likely to be more focus on the outcomes now.
  • USD/CNH has reversed course from earlier lows, the pair now back to 7.2880, versus earlier lows of 7.2781. This is a touch above late NY session highs from Friday trade.

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