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CHINA PRESS: The PBOC's first cut to the 7-day reverse repo rate in four years
yesterday, which followed an unexpected cut to the medium-term lending facility
rate in early November has led to speculation on the start of a new rate cut
cycle, Shanghai Securities News reports. Some market participants expect the
interest rate corridor has entered a downward cycle, the newspaper said citing
unnamed analysts. The fact that liquidity is still tight after the cut
yesterday, however, indicates market caution, the report said.