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PBoC Tweaks Policy Further With Standing Loan Facility Rate Cuts

CHINA
  • The PBoC cut their overnight, 7-day and 1-month SLF rates by 10bps a piece, extending their easing steps after the unexpected cut to the 7-day reverse repo rate overnight (down to 1.90% from 2.00%).
  • These SLF rates were last cut on September 1st last year - and followed a cut some weeks prior in the middle of August.

Full suite of new rates for the standing lending facility (a distinct rate to the reverse repo cut overnight, and the other headline tools including RRR):

  • Overnight rate down to 2.75%
  • 7-D rate down to 2.90%
  • 1-month rate down to 3.25%

All cuts effective from June 13th.

  • Modest bounce in the USDCNH rate, but relatively muted given further policy steps were expected (as flagged in the earlier property market package report in BBG) - and ranges muted ahead of US CPI in just under 10 mins.

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