China Seen Holding 3.00% Loan Prime Rate for 13th Month as Recovery Stays Uneven
Updated
Updated · Reuters · Jun 18
China Seen Holding 3.00% Loan Prime Rate for 13th Month as Recovery Stays Uneven
3 articles · Updated · Reuters · Jun 18
Summary
All 30 participants in a Reuters survey expected China to leave June loan prime rates unchanged on Monday, keeping the one-year LPR at 3.00% and the five-year rate at 3.50%.
Recent data point to a two-speed economy: exports and factory activity have stayed resilient, while domestic demand has weakened under a prolonged property slump and slow labor-market recovery.
Beijing is showing patience rather than broad stimulus, with economists saying policymakers may tolerate an export-reliant recovery until the third quarter despite muted housing wealth effects.
The PBOC is instead tightening its grip on short-term liquidity management, with Governor Pan Gongsheng outlining more overnight reverse repo operations; Citi said that is not outright easing but still expects a 10-basis-point cut later this year.