Another trial balloon in the Chinese press
In early November China's central bank lowered one-year medium-term lending facility by 5 basis points from 3.30% to 3.25%. That has the spillover effect of lowering the loan prime rate (LPR) which is a growing part of the PBOC's toolkit as new banking regulations come into effect next year.
The Medium-term Lending Facility (MLF) and associated LPR are the key levers for the PBOC at the moment.
There is expected to be an MLF operation today with 187.5B yuan due to be repaid but the report says not to expect a cut until some future date.
