China: PBOC delivered a rate cut in its SLF – BBH

By FXStreet FXStreet (Delhi) – Research Team at BBH, notes that the PBOC announced a rate cut for its Standing Lending Facility (SLF) for local financial institutions across several maturities.

Key Quotes

“The SLF for overnight maturity was cut to 2.75% from 4.50% and the 7-day maturity to 3.25% from 5.50%. This seems to be more about liquidity and market functioning rather than economic stimulus. It could help, for example, the PBOC control the policy rate by strengthening the upper limit of rates. Seasonality also plays a role, as we approach the end of the year. Either way, the move can only help sentiment in China.”
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Source:: FX Street