China keeps LPR fixed with Trump’s tariff yuan

China is expected to remain its main loan prices without change Monday, with LPR for one year by 3.1 % and 5 years by 3.6 %, as the central bank appears to focus on fixing the yuan amid commercial tensions with the United States

The Popular Bank of China’s decision comes at a time when China has reported better economic data than expected this month, with GDP in the first quarter grows by 5.4 % on an annual basisAllowing it a room to maintain fixed prices.

Retail sales and industrial production numbers for the month of March have also won the expectations included in Reuters.

For a year, LPR affects corporate loans and most of the household loans in China, while LPR for 5 years serves as a criterion for mortgage rates. PBOC LPRS has kept fixed since October last year.

After the announcement, Chinese yuan bond It was traded in 7,2995 against the dollar, while the yuan abroad was rarely strengthened to 7,2962 against Greenback.

The reservation was in line with the Reuters poll From economists, with 87 % they expect PBOC to keep fixed rates.

The Dutch Bank J. He had also expected to note last week that PBOC is likely to carry prices, as analysts lynn Song and Min Joo Kang indicate that it is unlikely to turn LPR without reducing the rib’s rate for 7 days first.

the Ribo rate for 7 days It is currently 1.5 %, and the last time was reduced by 20 basis points in September.

However, Ji also said, “low low inflation and strong external opposite pioneers amid escalating escalation threats provide a strong mitigation issue. But currency stabilization considerations may push the Popular Bank of China to wait until the US Federal Reserve reduces borrowing costs.”

The United States imposed a tariff of 245 % on Chinese imports, while China increased by 125 % on American imports.

While GDP growth numbers were encouraging, consumer prices remained in the second largest economy in the world in shrinking lands, with Read CPI in March It showed that the prices decreased by 0.1 % on an annual basis.

Producers prices decreased by 2.5 % in March, representing the twenty -ninth month in a row in the shrinkage area and witnessed the largest shrinkage since November 2024.