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People’s Bank of China (PBOC) in Beijing, China, Tuesday, April 18, 2023.
Bloomberg | Gets the image
On Monday, China continued stable lending rates when the country continues to fight the weak moods of consumers and mitigating growth.
People’s Bank of China He conducted a 1-year loan of 3.0%and 5-year-old BPR-3.5%.
LPR is usually accused of the best customers of banks, calculated on the basis of a poll of dozens of appointed commercial banks providing the proposed Central Bank rates.
The 1-year-old LPR affects corporate and most household loans in China, and the 5-year-old LPR serves as a benchmark for mortgage rates.
The decision comes after the country announced that GDP growth in the second quarter increased by 5.2% a year, which decreased by 5.4% in the first quarter. This, however, was higher than 5.1%, which expected a survey of Economists Reuters.
Retail sales growth in June also slowed down to 4.8% compared to a year earlier than by 6.4% for the year increased in May. This figure also did not match 5.4% of the forecast from the economists who were on Reuters.
After moving the maritime yuan remained mainly equal, trading 7.179 against the dollar.
“Rock of Demand”
Nomura’s analysts said in a note on July 9 that while the current economic indicators are held, economic foundations may “markedly deteriorate” in the second half of the year.
Analysts have stated that demand could be much weaker by several fronts, adding that asset prices may fall under new pressure, and market interest rates can even soften.
Thus, they believe that Beijing is “very likely that at some point (the second half of the year)” Beijing “will rush.”
Nomura said the country was faced with a “precipice of demand” in the second half of the year, with the factors, including the slowdown in the US tariffs and reducing sales in the key real estate.
“Among these negative drivers, the fiscal situation in most cities may deteriorate further. We expect GDP growth to fall to 4.0% in H2 with approximately 5.1% in H1.”
