People's Bank of China Loan Prime Rate Setting due today – no rate change is expected

<p>I posted on the LPR setting coming up later (0115 GMT) earlier here:</p><ul><li><a href="https://www.forexlive.com/centralbank/economic-calendar-in-asia-20-july-2023-peoples-bank-of-china-rate-announcement-20230719/" target="_blank" rel="follow" data-article-link="true">Economic calendar in Asia 20 July 2023 – People's Bank of China rate announcement</a></li></ul><p>According to a Reuters poll of 26 analysts, the one-year benchmark loan prime rate will remain at 3.55% and the five-year benchmark loan prime rate will remain at 4.20%, respectively, after the PBOC kept the rate on maturing medium-term policy loans rolled over this week unchanged.</p><ul><li><a href="https://www.forexlive.com/centralbank/peoples-bank-of-china-set-mlf-rate-at-unchanged-265-as-expected-20230717/" target="_blank" rel="follow" data-article-link="true">People's Bank of China set MLF rate at unchanged 2.65%, as expected</a></li></ul><p>The background to the setting today is of course that China's slipping closer to deflation, growth is feeble, youth unemployment is above 20%, and there are no signs of a reversal on the horizon. This is making the calls for more easing insistent and growing. These are unlikely to abate any time soon. </p><p>However, the PBOC doesn't make rash, or many, moves to lower rates. Its rate reduction on the LPRs of 10 basis points in June marked the first since almost a year and the fourth since the pandemic. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.