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MNI PBOC WATCH: LPR To Hold, More Easing Eyed On Fed Cut

Authorities will decide on China's LPR Friday.

MNI (BEIJING) - China's Loan Prime Rate is expected to hold steady on Friday despite recent data revealing significant economic challenges ahead and increasing expectations of a rate and reserve requirement ratio cut later this year supported by the Federal Reserve’s recent move lower.

The one-year LPR will remain at 3.35% and the five-year rate will hold steady at 3.85%. Both rates unexpectedly fell in July by 10 basis points after the central bank lowered the 7-day reverse repo rate by the same level. The PBOC has not shifted the 7-day rate so far this month. 

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MNI (BEIJING) - China's Loan Prime Rate is expected to hold steady on Friday despite recent data revealing significant economic challenges ahead and increasing expectations of a rate and reserve requirement ratio cut later this year supported by the Federal Reserve’s recent move lower.

The one-year LPR will remain at 3.35% and the five-year rate will hold steady at 3.85%. Both rates unexpectedly fell in July by 10 basis points after the central bank lowered the 7-day reverse repo rate by the same level. The PBOC has not shifted the 7-day rate so far this month. 

Keep reading...Show less