US LNG exports surge but will buyers in China turn up?
Investing.com-- The People’s Bank of China left its benchmark loan prime rate unchanged on Monday as widely expected, with rates remaining at record-low levels as Beijing moves to shore up economic growth.
The PBOC left its one-year LPR at 3.0%, while the five-year LPR, which is used to set mortgage rates, was unchanged at 3.50%, in line with expectations.
Both rates remained at historic lows, with Beijing having cut the LPR steadily over the past three years to provide more monetary support for the Chinese economy.
The LPR is set based on recommendations from 18 designated commercial banks, and serves as a benchmark for lending rates in China. A lower LPR facilitates more lending activity, while also releasing liquidity into the Chinese economy.
Analysts had tempered their expectations for more LPR easing this year after China and the U.S. agreed to lower their respective trade tariffs against each other in May and June.
But gross domestic product data for the second quarter still showed sustained weakness in the Chinese economy, especially as disinflation remained in play.
This trend, coupled with Beijing’s focus on shoring up the property market, could invite more cuts in the LPR, especially if U.S. tariffs and slowing consumption apply more pressure on the Chinese economy.