The People's Bank of China has cut interest rates three times this month: • 5 November: One-year Medium-Term Lending Rate cut by five basis points to 3.25%. • 18 November: 7D reverse repo cut by five basis points to 2.50%. • 20 November: 1Y and 5Y Loan Prime Rate also cut by five basis points to 4.15% and 4.80%, respectively. However, we should really see all these cuts as just one cut of five basis points. The policy implication is that the interest rate curve from the short rate to the five-year rate should reflect these cuts. Why the PBoC needs to control so many interest rates The methodology by the PBoC to move ... (full story)