PBOC Likely To Lower 5-Year LPR-Herald

The People’s Bank of China is more likely to lower the five-year Loan Prime Rate while keeping the one-year LPR stable, to help stimulating residential mortgage demand and boosting the housing market, the 21st Century Business Herald reported citing Ming Ming, chief economist of CITIC Securities. There is room for 15 bps cut in the five-year LPR, as the growth of new residential medium and long-term loans in May were still over CNY300 billion short of that in last May, repairing at a relatively slow pace, the newspaper said citing Li Chao, chief economist of Zheshang Securities. Any rate cut may come in June or July when core first- and second-tier cities such as Beijing, Shanghai, Shenzhen and Hangzhou are likely to loosen real estate regulations, the newspaper said citing Xiong Yuan, chief economist of Guosheng Securities.