China leaves standard lending rates unchanged as expected, although interest rates are reduced in the Federal Reserve

China maintained standard lending rates unchanged for the fourth month in a row on Monday, despite the reduction in the interest rate of the Federal Reserve in the United States last week.

The Popular Bank of China has maintained the price of the loan for one year without change by 3.0 %, while the five -year rate remained 3.5 %, according to statement. One year’s average affects most of the new and distinctive loans, while the five -year standard affects real estate loans.

The last central bank The major lending rates were reduced by 10 basis points in May As part of Beijing’s efforts to support its economy.

Last Thursday, PBOC maintained a seven -day reversal rate, which serves as the main policy rate, unchanged, following a 25 -degree federal reserve.

Standard lending rates – which are usually imposed on the best customers in banks – are calculated monthly based on the proposed prices of the designated commercial banks provided to PBOC.

The decision came on Monday in line with economists’ expectations that the Chinese authorities will stop the main stimulus measures amid another gathering in the stock market, even at a time when a series of economic data confirm the signs of fatigue in the economy.

The CSI 300 normative index opened above Monday before a decrease of 0.24 %. The yuan abroad reinforces a little bit to 7.1161 against the US dollar.

Chinese Economic The deterioration of slowdown in August With a set of main indicators of missing expectations. Retail sales slowed to 3.4 % in August, when consumption remained weak, while industrial product growth decreased to 5.2 %, which represents its weakest level since August last year.

In another sign of slow domestic demand, consumer prices in China More than expected last month fell While the contraction continued in wholesale prices for about three years.

The growth of exports in the country slowed to 4.4 % in August, which represents its lowest growth rate since February, as the impact of front loading shipments and the establishment of the American commercial policy aimed at transporting exports to the third countries diminished.

A team of economists in Beijing said that the momentum of growth is largely weaker in the third quarter with the deterioration of the real estate recession in China.

Economists are largely expecting that Chinese policy makers will launch marginal monetary mitigation later this year to ensure the second largest economy in the world that reaches the goal of the annual growth of the government about 5 %.

“Beijing’s focus from risk management has turned to stimulating growth, and moving from tolerance with contraction to thinking about the economy,” said Hong Hao, the administrative partner, director and administrative staff at Lotus Assets.

“China has reached a point in which it should stop ineffective, accumulate assets fed by debts and start reducing unproductive investments,” he said, expecting more political motivation in the coming months.

Barclays expects that the real GDP in China will grow by 4.5 % in 2025, noting a clearer slowdown, “although” additional policy support “is likely later this year.

The bank expects that PBOC will reduce the reverse ribau rate for seven days and a 10 -day Permissible loan rate in the fourth quarter, as well as reduce AA 50 bus points in the rate of reserve requirements, which determines the amount of cash banks that must be kept in the reserve.