Chinese Banks Likely to Push Lending Rate Cuts to Later in Year
- Loan prime rates expected to be kept unchanged on Tuesday
- Cuts could come later this year as PBOC keeps easing stance
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Chinese banks are expected to keep benchmark lending rates unchanged this week as the central bank pauses monetary easing and defends the yuan, though a reduction is anticipated in coming months.
Sixteen of the 17 economists surveyed by Bloomberg forecast the one-year loan prime rate will be maintained at 3.65% on Tuesday, with only one estimating a 10 basis-point drop in the rate. Eleven of the 12 economists who gave an estimate for the five-year LPR, a reference for mortgage rates, expect it to be held steady. Only one forecast a 15 basis-point reduction.