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Today will bring the final Loan Prime Rate....>

CHINA
CHINA: Today will bring the final Loan Prime Rate (LPR) fixing of 2019, at
01:30GMT.
- Speculation re: a 5bp cut to the 1-Year LPR fixing (currently 4.15%) has risen
since the PBoC administered a 5bp cut to the rate that it applies to its 14-Day
Reverse Repo ops on Wednesday (although this may have reflected some catch up to
earlier LPR/7-Day Reverse Repo cuts). The PBoC has switched its focus to
structural liquidity matters ahead of seasonal periods of worry i.e. the end of
the calendar year and the Chinese New Year, as it returned to the OMO space
after a 20-day hiatus earlier this week. Talks of a RRR cut in early 2020 are
also gathering traction.
- Expectations are for the 5-Year LPR fixing to remain unchanged at 4.80.%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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