China Slashes Key Rate, Setting Stage For Cut To De Facto Benchmark

After China slashed the 7-day reverse repo rate late last month, it was just a matter of time before the PBoC delivered a cut to the medium-term lending (MLF) rate. The country's multi-tiered rates regime can be daunting for the uninitiated, but the (very) short version goes as follows. In August, China unveiled a "revamped" loan prime rate (LPR), which, from that point forward, served as the de facto benchmark, antiquating the old, "official" lending rate. LPR is priced off MLF, so you really