Chinese Borrowing Costs Set to Drop Again as PBOC Signals Easing
- Banks expected to cut one-year loan prime rate on Thursday
- PBOC officials signaled additional easing measures to come
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Chinese lenders are expected to lower borrowing costs for a second month on Thursday after the central bank cut policy loan rates and pledged more easing to stabilize the economy.
Both the one-year and five-year loan prime rates are likely to be cut when announced by the People’s Bank of China, several economists said. The LPRs, which are the de facto benchmark lending rates, are based on quotes that 18 banks offer their best customers and are submitted to the PBOC.