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2 Mar 2015
PBoC on the cut again - TDS
FXStreet (Guatemala) - Analysts at TD Securities explained that the PBoC on the weekend cut its key benchmark rates by 25bp, lowering the one-year lending rate to 5.35% and the one-year benchmark deposit rate to 2.5%.
Key Quotes:
"This move was largely as anticipated (including TD) just that the timing was earlier than expected. Sunday and today’s manufacturing PMI updates for February were firmer than expected, defying market expectations that the weekend’s ‘pre-emptive’ rate cuts heralded a weaker data set."
"The official manufacturing PMI picked up from 49.8 to 49.9, better than mkt expectations for a further fall to 49.7."
"The HSBC PMI measure was significantly upgraded from 50.1 to 50.7, the biggest upgrade in over two years."
"Implications? We still see Q1 GDP printing closer to 7%, and we wait for hard data updates for the quarter before adjusting up or down."
Key Quotes:
"This move was largely as anticipated (including TD) just that the timing was earlier than expected. Sunday and today’s manufacturing PMI updates for February were firmer than expected, defying market expectations that the weekend’s ‘pre-emptive’ rate cuts heralded a weaker data set."
"The official manufacturing PMI picked up from 49.8 to 49.9, better than mkt expectations for a further fall to 49.7."
"The HSBC PMI measure was significantly upgraded from 50.1 to 50.7, the biggest upgrade in over two years."
"Implications? We still see Q1 GDP printing closer to 7%, and we wait for hard data updates for the quarter before adjusting up or down."