MLF rate, LPR to be cut in June, 5-year rate to be cut by more than 10 bp – Citic Securities
MACRO POLICY & REGULATION VIEWS & ANALYSIS
MLF rate, LPR to be cut in June, 5-year rate to be cut by more than 10 bp – Citic Securities
MACRO POLICY & REGULATION VIEWS & ANALYSIS

MLF rate, LPR to be cut in June, 5-year rate to be cut by more than 10 bp – Citic Securities

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

The PBOC’s move to cut the reverse repo rate by 10 basis points on Tuesday was mainly due to a slowdown in the economic recovery since April, slowing price growth and sluggish credit growth, Citic Securities said in a research note. 

The rate on the Medium-Term Lending Facility (MLF) and the benchmark lending rate LPR are expected to lowered in June, with the 5-year LPR to be cut by more than 10bp, the bank said.

The reverse repo rate cut likely marks the opening of a window for stepped-up monetary policy and infrastructure and real estate will likely become highlights, it said, cautioning short-term depreciation pressure for the Chinese yuan.