August 19, 2024 03:52 GMT
CHINA Data Preview: Loan Prime Rates Likely on Hold Tomorrow.
CHINA DATA
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- Commercial banks will likely keep their 1 and 5 year Loan Prime Rates (“LPR”) on hold tomorrow after July’s cut.
- The one-year LPR which is used as the benchmark for commercial loans and the five-year LPR, which is used as the reference rate for mortgages, will likely remain at 3.35% and 3.85% respectively.
- Whilst the PBOC has reiterated its support for the economy, it has cautioned that it won’t be adopting ‘drastic’ measures.
- We read this as allowing time for existing policies to flow through to the economy.
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