China widely expected to keep benchmark lending rates unchanged this week

Reuters’ latest survey of 28 market watchers sees all respondents expecting both the 1-year and 5-year LPRs to remain unchanged at 3.10% and 3.60% respectively. A trader at a Chinese bank commented that:

“LPRs were lowered so sharply in October, so it is unlikely to have another cut this month. We may first wait and see the impact of the policy in the short-term.”

From last month: China cuts 1 and 5 year rates by 25bp each, as expected

Before that, the previous cut to the LPRs was conducted in July. At the time, the rates were cut by 10 bps each.

This article was written by Justin Low at www.forexlive.com.