I've posted on this before, but ICYMI.
Moar? OK:
Shift to the 7-Day Reverse Repo Rate as the Main Policy Rate:
The 7-day reverse repo rate is pivotal in the PBoC's open market operations, where it provides short-term liquidity to commercial banks. By focusing on this rate, the PBoC seeks to exert more direct influence over short-term market interest rates, thereby enhancing the responsiveness of financial institutions to policy changes.
In line with this new framework, the PBoC made several rate adjustments:
September 2024: The rate was further lowered by 20 basis points to 1.5%, marking the lowest level on record since at least 2012.
Changes to the Loan Prime Rate (LPR) and MLF Setting Dates:
Loan Prime Rate (LPR): Previously, the LPR was closely linked to the MLF rate. With the shift to the 7-day reverse repo rate as the main policy rate, the PBoC aimed to reform the LPR setting mechanism to better reflect market rates and improve the transmission of monetary policy.
In October 2024 the PBOC cut the one-year LPR to 3.1% and the five-year LPR to 3.6%.
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Australian data - Wage Price Index (Q4 2024 ) +0.7% q/q (expected +0.8%)
The RBA cut its cash rate earlier this week. The Bank will be on hold now for a least a couple of meeting ahead.
ForexLive Asia-Pacific FX news wrap: RBA cuts rates for the first time in four years This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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