{"id":132652,"date":"2021-07-19T09:13:00","date_gmt":"2021-07-19T09:13:00","guid":{"rendered":"https:\/\/precoinnews.com\/?p=132652"},"modified":"2021-07-19T09:13:00","modified_gmt":"2021-07-19T09:13:00","slug":"china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided\/","title":{"rendered":"China likely to keep lending benchmark LPR steady in July, outlook divided"},"content":{"rendered":"

SHANGHAI (Reuters) – China will likely keep its benchmark lending rate unchanged at its July fixing on Tuesday, a small majority of respondents to a Reuters survey believe, but there are growing expectations for a cut after a surprise lowering of bank reserve requirements.<\/p>

FILE PHOTO: Headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS\/Jason Lee<\/figcaption>

Eleven traders and analysts, or 52.4% of 21 participants, in the snap poll predicted no change in either the one-year Loan Prime Rate (LPR) or the five-year tenor.<\/p>\n

The remaining 10 respondents expect a cut to the one-year LPR. Nine participants forecast a marginal cut of 5 basis points, and one sees a 10 bp reduction.<\/p>\n

The one-year LPR was last at 3.85%, and the five-year rate stood at 4.65%.<\/p>\n

The mixed expectations come after China\u2019s central bank lowered the amount of cash that banks must hold as reserves, releasing around 1 trillion yuan ($154.35 billion) in long-term liquidity to underpin its post-COVID economic recovery that was starting to lose momentum.<\/p>\n

However, the People\u2019s Bank of China (PBOC) kept borrowing costs of medium-term lending facility (MLF), which serves as a guide for the LPR, unchanged at its latest operation last week, when it partially rolled over maturing loans.<\/p>\n

\u201cAlthough the PBOC recognises that downward pressure on growth is likely to rise in H2, it has been quite determined in containing financing for the property sector, which is a key signature of Beijing\u2019s \u2018dual circulation\u2019 strategy,\u201d said Lu Ting, chief China economist at Nomura. Lu expects the LPR will likely remain unchanged this month.<\/p>\n

A slew of economic data including second quarter GDP and June activity indicators showed that China\u2019s economic recovery might have peaked, suggesting more easing was still needed.<\/p>\n

Graphic: China GDP & rates –<\/p>\n

China\u2019s economy grew slightly more slowly than expected in the second quarter, weighed down by higher raw material costs and new COVID-19 outbreaks, as expectations build that policymakers may have to do more to support the recovery.<\/p>\n

\u201cThe 1Y LPR is likely to fall by 5 bps on July 20 and another 5 bps before year-end due to RRR cuts and reduced interest rate ceilings for term deposits longer than one year,\u201d Li Wei, senior China economist at Standard Chartered, said in a note.<\/p>\n

The LPR is a lending reference rate set monthly by 18 banks.<\/p>\n

All 21 responses in the survey were collected from selected participants on a private messaging platform.<\/p>\n

($1 = 6.4788 Chinese yuan)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SHANGHAI (Reuters) – China will likely keep<\/p>\n","protected":false},"author":3,"featured_media":132651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nChina likely to keep lending benchmark LPR steady in July, outlook divided - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China likely to keep lending benchmark LPR steady in July, outlook divided - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"SHANGHAI (Reuters) – China will likely keep\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-19T09:13:00+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/07\/China-likely-to-keep-lending-benchmark-LPR-steady-in-July-outlook-divided.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/china-likely-to-keep-lending-benchmark-lpr-steady-in-july-outlook-divided\/\",\"name\":\"China likely to keep lending benchmark LPR steady in July, outlook divided - 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