China June LPR unchanged after May cut

China did not change the comparison loan rates on Friday after the comprehensive monetary expansion measures released last month, and alleviated some growth concerns as a trade agreement with the US.

China Halk Bank kept the 1 -year loan prime rate at 3.0% and 3.5% at 5 -year LDR. expression Friday, in line with the Reuters survey estimates.

Last month, Chinese officials, Washington and trade tensions with the proposal to cushion, for the first time since October, the credit rates reduced credit rates with 10 basis points. A number of commercial banks have reduced deposit rates to protect net interest margins.

Normally, LP, which is collected to the best customers of the banks, is calculated based on a questionnaire of the commercial bank, which sends the recommended prices to the Central Bank.

1 -year LDR, while affecting corporate and most home loans in China, acts as a criterion for 5 -year LP mortgage rates.

The fears of the trade war allowed the United States and China trade representatives to honor the unity of the unity reached in Geneva at the beginning of this month, allowing rare land and technology trade between the two countries, allowing each other to be suspended from prohibitive tariffs.

Nomura maintained forecasts for a 50 -based deduction at a reserve requirement rate with 10 basis points from 15 basis points for the fourth quarter this year.

It is possible that Chinese authorities will use “limited urgency” in the market in the near term, Beijing, Beijing, can still be forced to increase policy support in the second half of this year as an impact on the anger of businesses.

Bruce Pang, an assistant professor at Cuhk Business School, shows that the latest statements of Chinese policy makers are a “strong degree of satisfaction” with the current stance and consequences of China’s monetary policy.

While the authorities discover alternative ways to encourage economic growth, interest rate deductions and other monetary instruments are more tend to fulfill a “restricted, supportive role”.

State Foreign Exchange Administration President Zhu Hexin, Wednesday at a high -profile finance forum in Shanghai on Wednesday, China’s ability to resist the forex market volatility has improved, he said.

PBOC Governor Pan Gongsheng emphasized the ambition of expanding the international use of Beijing’s digital Yuan and called for a multipolar global monetary system.