Low CPI Doesn't Increase Chances Of LPR Cut - Analysts

Authorities will likely not cut China's LPR due to satisfactory Q1 GDP and credit growth, and subdued CPI, according to Yicai. Experts said the central bank has room to support the economy if needed, but will be more inclined to cut the reserve rate requirement (RRR) or increase its targeted lending, rather than launching a policy cut when rates are at historic lows due to concerns about financial risk. Another analyst said authorities have already implemented loose monetary policy and the focus should shift to boosting private sector confidence by improving market access, promoting fair competition and protecting property rights.