China is widely expected to keep its benchmark lending rate steady for the fourth month in a row at its August fixing on Thursday as the economy continues to recover from the coronavirus crisis, a Reuters survey showed, reported Reuters.
Twenty-eight traders and analysts out of 31 participants in the snap survey this week predicted no change to the one-year Loan Prime Rate (LPR) or the five-year tenor. The remaining three respondents expected a marginal 5 basis point cut to both rates.
The one-year LPR is now 3.85% after two cuts this year, while the five-year rate is at 4.65%.
Market expectations for another rate hold were reinforced on Monday after the People’s Bank of China (PBOC) injected more fresh liquidity through its medium-term lending facility (MLF), while keeping borrowing costs unchanged for the fourth straight month.