China rate cut tipped to hit MMF market

China’s move late last week to cut its lending rate and liberalise interest rates are forecast to dent the popularity of money-market funds, but not enough to prevent their dominance of mainland portfolios. On November 21, the People’s Bank of China cut the one-year lending rate by 40 basis points to 5.6% and the one-year deposit rate by 25bp to 2.75%. Barclays expects two more 25bp cuts in the benchmark interest rate in the first half of next year, which would affect both lending…