Reports of an item in the China Securities Journal today citing an analyst forecasting a cut to the MLF rate in September
MLF is the Medium-term Lending Facility:
- can be three, six and 12 months loans
- loans to banks
Most recent lending via the MLF has been at 3.30%
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I posted on a similar report last week (of a cut to MLF rate). Looks like its on the way. Over the weekend we got trade balance data from China in which I touched on stimulus efforts in China, and again today:
- China trade balance data for August - surplus comes in below median estimate
- ICYMI - China trade balance data released over the weekend showed a decline in exports again
One the one hand you have a slowing China economy in the face of trade war impacts and on the other a boost to stimulus. One is a negative for risk, t'other a positive.
