China’s rate cuts sequence hints at reduced role for MLF

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Media Conglomerate: Midwest Communications

China’s rate cuts sequence hints at reduced role for MLF

SHANGHAI (Reuters) – China’s latest series of rate cuts show the central bank’s monetary framework has changed, analysts said, with the short-term repo rate becoming the primary signal and a diminished role for its medium-term lending facility (MLF). CONTEXT The People’s Bank of China (PBOC) surprised markets this week by first cutting several key rates including loan prime rate (LPR) and reverse repo rate on Monday. It then conducted an uns…