Initial Sell-Side Reactions To PBoC Repo Rate Cut - More Yuan Weakness Seen

Some initial sell--side reactions to China's PBoC cutting the 7-day repo rate 1.9%.
ANZ: "China’s interest-rate cut gives traders the greenlight to weaken the yuan further, with the 7.20 per dollar level likely to be tested, according to Australia & New Zealand Banking Group Ltd. The PBOC’s decision to lower the seven-day reverse repo rate by 10bps came sooner than ANZ had expected. The MLF rate and LPR rates are also likely to be adjusted on June 15 and June 20, respectively."
SocGen: "China’s rate cut will impact the yuan more than bond yields, according to Societe Generale. SocGen sees upside risk to its USD/CNY forecasts; currently at 7.1 by end of 2Q and 7.3 at end of the year. The FX market tends to react more vigorously as the Chinese rate market has front-loaded PBOC rate cuts."

Mizuho: "The PBOC rate cut came earlier-than-expected and before the MLF day, suggesting policymakers may attempt to act ahead of the curve to mitigate the impact on the yuan, according to Mizuho Bank." “The PBOC’s reverse repo rate cut was not entirely surprising following the recent deposit rate cuts and PBOC Governor Yi Gang’s dovish remarks." “With CNY fixing largely in line with expectation, the PBOC appears to be allowing some more yuan depreciation from current levels."