China, Benchmark continues to prioritize lending rates

China can reduce the main policy speed shortly after the country’s annual parliamentary session, economists and economists told CNBC after the country’s central bank Kept the main rates of the loan fixed Thursday.

The People’s Bank of China was 1.6% of 1 year LPR 3.1%, 5 years in LPR. The decision was fit Reuters survey calculations.

LPRS – Usually catching the best customers of banks – The monthly designated commercial banks are calculated on the basis of the proposed prices offered to PBOC. One-year LPR, in China affects corporate loans and most home loans, serves as a criterion for five years LPR mortgage prices.

“The rapid speed of banks with the net interest and exchange rate causes the speed of the federal reserves to stabilize China’s policy speed,” said Bruce Pang, China Hong Kong Business School.

Pang, as soon as possible, the next month has cut a 50-based point of reserve requirement and waiting for a 7-day reverse repo rate – the country’s main policy – 40 to 50 basic points should be lowered.

The Central Bank of China often uses the 7-day reverse repo rate managing the amount of liquidity in the banking system – to signal the monetary policy and direct LPR to the desired direction.

PBOC kept 7-day rate fixed 1.5% since one cut in SeptemberAs the central bank Wanted to defend Yuan Facing low pressure between higher tariffs threats.

However, Yuan’s support for the economy, because a weaker yuan can help to compete abroad, a stronger currency, which is a stronger currency, which is weaker than the consumer demand.

“We still think that (7 days of ratio) is a decent chance to be cut in Q1,” said Lynn song, as the main economist, the main economist in ing remains relatively high. After the annual parliamentary session in Beijing next month, he expects to reduce PBOC.

“Cutting rates can help further invest in investment and consumption,” he said.

China, the last annual growth target in 2025, in the parliamentary session chaired by Xi Jinping. Usually, the event, which lasted a week, is scheduled to start on March 5.

Last year, the consumer reduces the target of “about 3%” at the level of “approximately 5%” at the level of “approximately 5%” at the level of “approximately 5%” in the level of “approximately 2%”. “About 5%” and “about 5%” in the level is likely not to be stored at about 5%.

Wall Street Bank is waiting for politicians to repeat the pedestal in the congregation, which makes it easy to make money in the congregation when stabilizing the “reasonable range”.

PBOC Governor Pan Gongsheng He said at a conference in Saudi Arabia on Sunday He said that a stable wash is critical to maintain global financial and economic stability. Pan also repeated Beijing’s active financial policy this year and the commitment to adopt a suitable monetary policy.

China Sea Yuan, after returning some losses in recent weeks, Donald Trump fell about 2.5% because of GreenBak in November. 0.20% strengthened to trade on $ 7,2673 on Thursday.

The second largest economy of the world is a long-term crisis and Tepid struggles to quit the consumer requirement. China’s production Unexpectedly concluded in JanuaryWhen the services are weakening the activity, the more challenge for more stimuli.

PBOC officials said at the end of last year would have cut the ratio of banks back up Interest rates are still important at the “appropriate time” level interest rates because politicians face more trade tensions with the United States

Last month since the oath, there is US President Donald Trump 10% tariff applied in all imports From China, up to 25% on existing tariffs.

However, after markets on trade tensions, Arangin has grown, it is reported Trump can hit a large contract with ChinaThe Assamental Team in the DBS Bank, noted on Thursday in a note.

“The increasing hopes of the United States, as soon as the markets expect more Trump tariffs, can limit any deterioration in RMB’s mind,” he said.

PBOC is a slower pace of feeding by reducing the steps, as well as a policy rate. US federal reserve officials have agreed to reduce inflation before reducing inflation interest rates Minutes of the January Meeting, released on Wednesday.