Overview
- All 23 respondents in a Reuters survey expect the one-year and five-year LPRs to stay at 3.0% and 3.5% on Thursday, extending a six-month streak of no changes.
- The PBOC kept its seven-day reverse repo rate unchanged this month, reinforcing a steadier policy stance and its role as a key policy anchor.
- The bank revived the concept of “cross-cyclical” adjustments in its Q3 report, which analysts say indicates reduced urgency for broad-based easing.
- Official data cited by Xinhua show weighted-average rates on new corporate loans and new mortgages fell to 3.1% in October compared with a year earlier.
- New bank lending dropped sharply in October and missed forecasts, and analysts such as Fitch’s Jeremy Zook see fiscal measures as better placed to support growth.