State of play with China's central bank
China left its loan prime rate unchanged at 3.85% for one year and 4.65% for five years in a decision early today. That was no surprise.
There is growing speculation thought that the PBOC will lower rates before year end, though likely in the required reserve ratio (RRR) instead.
The Global Times wrote about the likelihood of a cut today without offering a hint at what's to come.
Xi Junyang, a professor at the Shanghai University of Finance and Economics, said that the central bank will likely cut the RRR, the amount of cash that banks and financial institutions must hold as reserves, by 25 basis points before the end of this year.
Other analysts cited in the article disagreed though, so there's likely no signal in state-sponsored publication.
