China central bank makes unexpected rate cut

The People's Bank of China cut the rate on the medium-term lending facility (MLF) overnight, with a 15bp cut down to 2.5%. Analysts told Reuters, the move opened the door to a potential cut in China's lending benchmark loan prime rate (LPR) next week. Janet Mui: Reading the China policy tea leaves is getting more difficult The Chinese central bank also gave the economy a cash boost with an injection of  204 billion yuan through seven-day reverse repurchase agreement, while cutting borrowing costs by ten basis points to 1.80% from 1.90% previously. Central bank action has been tr...