Economics
Chinese Banks May Lower Lending Rates, Giving Relief to Economy
- One-year loan prime rate may be cut from 3.7%, survey shows
- Loan growth weakened sharply in April amid Covid lockdowns
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Chinese banks may cut their benchmark lending rates for a second time this year, giving consumers and businesses some relief as Covid lockdowns and outbreaks wreak havoc on the economy.
The one-year loan prime rate -- the de facto benchmark lending rate -- will likely be reduced by 5-10 basis points from 3.7% on Friday, according to 11 of 19 economists surveyed by Bloomberg. Seven of them see a cut to 3.65%, four predict 3.6% and the rest expect no change.