China Lending Benchmark May Get 5-bp Cut: Journal

China’s Loan Prime Rates, the benchmark lending rates, are likely to be lowered by 5 basis points next Monday, given that banks’ borrowing costs have dropped significantly after two RRR cuts and partial refinancing interest rate cuts, the China Securities Journal reported citing Zhang Jiqiang, chief fixed income analyst at Huatai Securities. The central bank kept the rate of medium-term lending facility, the anchor of LPR, unchanged on Wednesday as it intends to signal prudent monetary policy stance has not changed. PBOC is still likely to cut MLF rate in the first half of next year to revive growth, the newspaper said citing Wang Qing, chief macro analyst with Golden Credit Rating.