SHANGHAI- 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 percent 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. – Reuters
