China June LPR unchanged after it has cut May

China maintained standard lending rates that did not change on Friday, after the overwhelming monetary mitigation procedures that were put forward last month, and as a commercial deal with the United States, it reduces some growth concerns.

The Chinese People’s Bank kept the first rate of a year for a year of 3.0 % and 5 years, with 3.5 %, according to statement Friday, in line with the Reuters poll estimates.

Last month, the Chinese authorities Reducing lending rates for the first time Since October by 10 basis points, an attempt to rid the influence of trade tensions with Washington. A large number of commercial banks also reduced their deposit prices to protect the net interest margin.

LPR, which is usually imposed on the best bank customers, is calculated based on a survey of dozens of specific commercial banks that offer proposed prices to the central bank.

For a year, LPR affects corporate loans and most of the household loans in China, while LPR for 5 years is a standard for mortgage rates.

The commercial war concerns have declined to some extent after that, the trading representatives in the United States and the Chinese agreed earlier this month to honor the consensus reached in Geneva in May, allowing the trade of land and rare technology between the two countries while suspending exorbitant levels of customs tariffs on each other.

NOMURA has reduced the cuts of the rate of the fourth quarter this year to 10 basis points from 15 basis points, while keeping estimates to reduce 50-Basis in the rate of reserve requirements.

The Chinese authorities are likely to exercise a “limited urgency” in offering additional financial stimulation in the short term, perhaps Beijing may still be forced to intensify politics support in the second half of this year, as the effects of the mood of the front business of companies, Nomura said the economists.

Bruce Bang, assistant professor at Cuhk Business College, said the recent notes of Chinese policy makers also indicate a “strong degree of satisfaction” with the current position and monetary policy results in China.

Bang added that officials are increasingly tending to put in place cuts in interest rates and other cash tools in a “more restricted and supportive role” while exploring alternative ways to stimulate economic growth.

Zhu Hexin, head of the state administration for the foreign state, said on Wednesday at a high -level financial forum in Shanghai that China’s ability to face the flies market fluctuations has improved.

Pan Gongsheng Governor has emphasized Beijing’s ambition to expand the international use of the digital yuan and called for a multi -polar global currency system.