China rate cuts whatevs, not whatever it takes

Tuesday 22 October 2024

It was exciting for the day. Goldman:

The PBOC delivered 25bp cuts to both the 1-year and 5-year LPR today (Oct 21st) from 3.35%/3.85% to 3.1%/3.6%.

The move was a small dovish surprise as the 25bp cuts align with the upper end of the 20-25bp range mentioned by the PBOC governor previously (vs. Bloomberg median forecasts of a universal 20bp LPR cut).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.