According to a survey of traders and analysts conducted by Reuters on Wednesday, the People’s Bank of China (PBOC), the Chinese central bank, is likely to cut its benchmark interest rate, the Loan Prime Rate (LPR), on Thursday morning at 0130 GMT.
Key findings:
All 51 respondents in the snap survey expected a reduction in the loan prime rate (LPR) at the central bank’s monthly fixing.
Among them, 38 respondents, or about 75% of participants, expected both the one-year and the five-year LPR to be lowered by 10 basis points.
This comes after the PBOC cut the interest rate on its one-year medium-term lending facility (MLF) on Monday, in an effort to cushion the blow on the economy from the coronavirus outbreak.
Last month, China kept the one-year loan prime rate (LPR) unchanged at 4.15%.
On a rate cut, the risk sentiment could receive a fresh boost, as China deploys more stimulus measures to battle the virus impact, which could benefit the regional stocks, Antipodeans and the local currency.
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