China one-year loan prime rate unchanged
|China leaves one-year loan prime rate unchanged at 3.85% as expected.
China leaves five-year loan prime rate unchanged at 4.65% as expected.
The LPR is a lending reference rate set monthly by 18 banks.
AUD/USD was unchanged on the data.
The bulls were in control at the start of the day, correcting deeper into resistance on the hourly chart as follows:
Reuters reported that growth in China’s factory output slowed for a third straight month in May, likely weighed down by disruptions caused by COVID-19 outbreaks in the southern export powerhouse of Guangdong.
“The recovery momentum is moderating, and there is still unevenness across sectors ... this likely points to Beijing staying on hold with ‘no sharp turns’ in its policy stance,” said Chen Jingyang, economist for Greater China, expecting one-year LPR to stay on hold this year but with more targeted supportive measures for the hard hit SMEs.
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