Economics
China’s Lower Loan Rate Lacks Punch for Liquidity-Hooked Markets
- One-year loan prime rate set at 4.2% versus 4.25% in August
- PBOC has refrained from cutting policy rates this week
Cranes operate at a residential buildings construction site in Beijing, China.
Photographer: Qilai Shen/Bloomberg
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Analysts called for stronger easing signals from Beijing after a new gauge of borrowing costs was only slightly lowered Friday.
The one-year reference rate for bank loans was set at 4.2% for September versus 4.25% in August, according to a statement from the central bank. That’s in line with the median estimate compiled by Bloomberg. The five-year tenor was kept at 4.85%. The Shanghai Composite Index added just 0.2% while the yield on 10-year government bonds rose by one basis point to 3.12% as of 10:33 a.m. local time.