MNI China Daily Summary: Tuesday, July 23

MNI: PBOC Net Drains CNY408.7 Bln Via OMO Tues

MNI: PBOC Sets Yuan Parity Lower At 7.1334 Tues; -1.30% Y/Y

CHINA PBOC CONDUCTS CNY267.3 BILLION VIA 7-DAY REVERSE REPOS TUES

CHINA SETS YUAN CENTRAL PARITY AT 7.1334 TUES VS 7.1335

MNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework

EZ/UK T-Bill Calendar: 3/6-Month RATB Auction on Tuesday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

Philippine's FinSec Open To Rate Cuts, Front-End Yields Lower

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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MNI BRIEF: RBA Will Take Cautious Approach To Rate Cuts

(MNI) Melbourne

The Reserve Bank of Australia will take into account lags between monetary policy change and the impact on the economy before acting to ease its cash rate, Governor Michele Bullock told a parliamentary committee Friday.

“We do need to take those [lags] into account, so that's the reason we're cautious and why you see all around the world, the central banks are cautious,” she noted. “They have stopped raising rates but they're cautious. Many of them are pushing back a lot on this. They're not ready to say 'job done' and that's because of the lags in policy.”

She noted central banks want to see data and they want to be convinced they are heading sustainably back into the band. “It's no good just to go in and then pop out again. [We have] got to be convinced that we were back in the band... and we're staying there.”

The RBA held the cash rate steady this week at 4.35%, but noted in its updated forecasts that it assumes the rate will fall to 3.9% by the end of the year. (See MNI RBA WATCH: RBA Bases Forecasts On 3.9% Cash Rate By Dec)
Daniel covers the Reserve Bank of Australia and the Reserve Bank of New Zealand and leads the Asia-Pacific team.
Central Bank NewsPolicy NewsAPACAustraliaBriefStoryRBARegion
Daniel covers the Reserve Bank of Australia and the Reserve Bank of New Zealand and leads the Asia-Pacific team.
Central Bank NewsPolicy NewsAPACAustraliaBriefStoryRBARegion

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