PBOC to hold key rate steady on Friday, rate cut talks alive – Reuters poll
|The People’s Bank of China is expected to keep the one-year Loan Prime Rate (LPR) unchanged for the 16th straight month at its August fixing on Friday, the latest Reuters poll of 32 traders and analysts showed on Thursday.
Key takeaways
“Some traders and analysts believe a cut may be needed soon amid signs the country's economic recovery is losing steam.”
“78% of 32 participants, in the snap poll predicted no change in either the one-year Loan Prime Rate (LPR) or the five-year tenor.”
“The remaining seven respondents all expected a cut to the one-year LPR, with six participants predicting a 5 basis points (bps) reduction and one seeing a 10-bps cut.”
“Policy insiders told Reuters earlier in August that China is poised to quicken spending on infrastructure projects while the central bank supports the economy in other ways.”
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