China: PBoC expected to leave rates unchanged – UOB

The PBoC meets on Friday and is forecast to refrain from acting on rates, suggested Economist at UOB Group Lee Sue Ann.

Key Takeaways

“With another CNY3.75 trillion of MLF maturing the rest of the year, the PBoC may need to cut the RRR further to pump more liquidity back into the system.”

“However, we maintain our expectation for the PBoC to keep its benchmark 1Y LPR and the 5Y & above LPR unchanged at 3.85% and 4.65%, respectively, for the rest of the year.”