China’s Banks Set to Cut Key Rates Amid Covid, Property Slumps
- One-year LPR expected to be trimmed to 3.6%: Bloomberg survey
- Borrowing demand boost seen limited as debt, income woes loom
A man rides a bicycle past the People's Bank of China (PBOC) headquarters in Beijing, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese banks will likely trim their benchmark loan prime rates Monday for the first time in months to help spur borrowing demand and reverse a sharp slump in consumer and business sentiment.
The one-year loan prime rate -- the de facto benchmark lending rate for banks -- is expected to be cut by 10 basis points to 3.6%, according to all 20 economists polled by Bloomberg. That would be the first reduction in that rate since January.