Oct 29
China: Another 27bp interest rate cut
The Peoples Bank of China (PBoC) today cut the benchmark 1-year lending rate by 27bp to 6.66% and the benchmark 1-year deposit rate by 27bp to 3.60%. However, somewhat surprisingly, the reserve requirement ration was left unchanged. There is some speculation in the market that this is the first step in a series of coordinated international rate cuts coming this and next week. With the third interest rate cut in just six weeks PBoC is now easing aggressively. We expect another four 27bp