The People’s Bank of China (PBOC) said in a statement on Friday, “ the decision to lower RRR is equivalent to providing long-term low-cost funds for banks.” Additional takeaways The impact of the recently announced incremental interest rate policy on banks' net interest margins remains neutral overall.
The People’s Bank of China said in a statement on Friday, “ the decision to lower RRR is equivalent to providing long-term low-cost funds for banks.” Additional takeaways The impact of the recently announced incremental interest rate policy on banks' net interest margins remains neutral overall. Lowering of the interest rate of the stock of mortgage loans will reduce the interest income of banks, but will also reduce the early repayment of customers.
’s decision to lower RRR is equivalent to provide long-term low-cost funds for banks. Medium-term lending facility and open market operation will be the main method for the to provide short- and medium-term funds to commercial banks. Market reaction AUD/USD is recovering some ground on these headlines, currently trading at 0.6885, still down 0.14% on the day. Australian Dollar FAQs What key factors drive the Australian Dollar? One of the most significant factors for the Australian Dollar is the level of interest rates set by the Reserve Bank of Australia . Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore.
Centralbanks Interestrate AUDUSD
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AUD/USD strengthens above 0.6800 on RBA-Fed policy divergence, eyes on PBoC rate decisionThe AUD/USD pair trades on a stronger note near 0.6810 during the early Asian session on Friday.
Read more »
Australian Dollar recovers losses following PBoC interest rates decisionThe Australian Dollar (AUD) recovers its daily losses and extends its winning streak against the US Dollar (USD) following the interest rate decision by the People’s Bank of China (PBoC) on Friday.
Read more »
China’s Politburo: Will lower RRR, implement forceful interest rates cutChina Politburo held meeting on Sept 26 Analysed current economic situation and work, plan for future economic works.
Read more »
China: It takes two to tango – Standard CharteredPBoC announced outsized RRR and policy rate cuts today. Monetary easing would be less effective without proactive fiscal policy, more bond financing is likely.
Read more »
PBoC cuts seven-day reverse repo rate to 1.5% from 1.7%, trims Reserve Requirement Ratio (RRR) by 50 bpsThe People's Bank of China (PBOC) cut the seven-day repo rate to 1.5% from 1.7% on Friday.
Read more »
PBOC sets USD/CNY reference rate at 7.0101 vs. 7.0354 previousThe People’s Bank of China (PBoC) set the USD/CNY central rate for the trading session ahead on Friday at 7.0101, as compared to the previous day's fix of 7.0354 and 7.0093 Reuters estimates.
Read more »