China state (financial) press says the PBOC has room to cut rates (opinion piece)

A piece in today's China Securities Journal: citing analysts:

• PBOC still has policy space to cut the loan prime rates.

Only yesterday the PBOC left these rates unchanged:

• the one-year loan prime rate was held at 3.70% while the five-year remained at 4.60%

Perhaps these analysts were forecasting a rate cut yesterday. Plenty were, Reuters polling showed (28 traders and analysts surveyed):

• 11, or 39% of all respondents, predicted a marginal cut of 5 basis points (bps) to both the one-year loan prime rate (LPR) and the five-year rate
• Another six participants also expect a reduction to either rates within a range of 5 to 10 bps

There can be a tendency to not let go of a forecast even after its been shown to be incorrect (it happens). This might go some way to explaining these analysts implying the PBOC got it wrong.

PBOC Gov Yi Gang: