PBoC offers reverse repos at lower yield – TradeTheNews

FXStreet (Barcelona) - The TradeTheNews Team gives an update regarding the key developments in the Chinese market – PboC announcing another injection via repos.

Key Quotes

“In China, the PBoC announced its 12th consecutive injection in its regular market operation via 7-day repos. Moreover, the central bank lowered the offering yield by another 10bps after taking a pause in reducing that rate last week.”

“Among notable press from China, one report called stock margin trading risk controllable even though margin debt hit a fresh record high in March.”

“Regionally, China and Japan fin mins announced plans to hold their first high-level meeting since April 12th, with some of the attention dedicated to AIIB.”

RBA holds rates steady, but maintains an easing bias – Capital Economics

Paul Dales, Chief Australia & NZ Economist at Capital Economics reviews the RBA rate decision, and notes that the desire for a weaker AUD and the slowdown in economic growth might lead the central bank to cut rates to 1.5%.
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