Reuters survey shows that the industry generally predicts that China will reduce the loan market quotation interest rate (LPR) on Tuesday (June 20).This will be the first time that the People's Bank of China has lowered LPR in 10 months.
The People's Bank of China lowered the seven -day reverse repurchase interest rate on June 13th, and on the 15th, it was expected to reduce the interest rate of medium -term lending facilities (MLF) on the 15th.
Reports pointed out that the Bank of China has lowered short -term and medium -term policy interest rates, indicating that the official will begin a new round of currency loose environment to promote recovery.
In the survey of 32 market observers in Reuters, everyone is expectedThe basis point is 3.55%; others expect the interest rate reduction range will be 5 to 15 basis points.
As for the five -year LPR, half of the market observers are expected to reduce at least 15 basis points to stimulate the demand for housing and support the real estate department. There are also 14 people expected10 basis points to 4.2%.
Zhao Yaoting, a global market strategist in Jingshun Asia Pacific, told Reuters that usually the interim borrowing facilities and public market operation (OMO) interest rates are reduced, which means that the bank's preferential loan interest rate will also be reduced by similar extent.
But he believes that when Chinese families and businesses are too conservative and busy deleveraging and repaying debts, the interest rate cut policy may become invalid.
The State Council of China held a executive meeting last Friday (16th) to propose changes to the economic situation and must take more powerful measures to promote the economy, and said that a number of policies and measures should be studied.
After China's economic figures were released in May last week, Morgan Chase, UBS, and Goldman Sachs successively lowered China's GDP expectations in 2023.
