China seen holding benchmark rate steady in Aug, but weak data fans rate cut talk
China is expected to keep its benchmark lending rate unchanged for the 16th straight month at its August fixing on Friday, but some traders and analysts believe a cut may be needed soon amid signs the country's economic recovery is losing steam, a Reuters survey showed.
Twenty-five traders and analysts, or 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.
None expected changes to the five-year tenor -- which influences the pricing of mortgages, an area where authorities are keeping a tighter grip to curb rising home prices.
The one-year LPR is currently at 3.85%, and the five-year rate is 4.65%.
Reference: Reuters
Read More: https://www.reuters.com/
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