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China's central bank announced on Monday that it would maintain its benchmark lending rates, a move expected by the market following recent policy rate stability amidst signs of economic recovery. According to the People's Bank of China, the one-year loan prime rate remains at 3.45%, while the five-year rate stands at 3.95%. This decision aligns with the recent unchanged status of the medium-term lending facility rate, which serves as a reference for the loan prime rate set by major Chinese banks. China's economy exceeded expectations in the first quarter, with a 5.3% year-on-year GDP growth. Despite setting a growth target of around 5.0% for the year, the robust economic performance reduces the likelihood of immediate easing measures, despite some economists advocating for interest rate cuts to support the struggling real estate sector. Additionally, the depreciation pressure on the yuan, similar to other Asian currencies, amid a strengthening U.S. dollar is a significant factor. The central bank reiterated its commitment to maintaining a stable currency, emphasizing its aim to keep the yuan at a reasonable and balanced level. In light of China's robust economic momentum and the central bank's commitment to currency stability, analysts anticipate a cautious approach to monetary policy adjustments. While some economists advocate for further interest rate cuts to stimulate the real estate sector, policymakers may prioritize maintaining stability amidst external currency pressures and achieving targeted economic growth. The decision to hold benchmark lending rates steady reflects a delicate balancing act between supporting economic recovery and ensuring financial stability in the face of evolving domestic and international challenges. Read our other insightful economic news: https://lnkd.in/exQ-kXwE #FPG #Fortuneprimeglobal #commodity #equity #technicalanalysis #technology #news #investors #intraday #investing

Another rate cut from China this week, joining the trend of major economies easing monetary policy. While #RBA rates remained steady today, it's becoming a question of when, not if, they will cut rates. Reach out to discuss your personal home and investment lending needs. 0466 558 192 lewis.johns@alic.com.au #weareALIC #InterestRates #InvestmentLending #EthicalLending

EM Banks' Catalysts Hinge On Policy Shift From China to Turkey 💠 #China’s property policies and President Xi Jinping's pledge to develop "new productive forces" could sustain loan growth of at least high-single digits in 2024, despite April's sharp slowdown 💠 #Indian banks are also poised for strong lending, with the government's focus on infrastructure likely to continue after Narendra Modi’s election, though at a more-moderate pace with potential coalition-partner opposition 🔹 Yet funding costs may stay elevated, amid slower deposit growth and higher-for-longer US rates 💠 #South #African lenders are set for more market-friendly policies that would enforce fiscal discipline and tackle electricity blackouts in a government of national unity between the Democratic Alliance and the African National Congress 💠 #Gulf banks' key drivers will remain the $80 oil and $2 trillion in construction spending, where capital flows from China could help 💠 #Turkish peers may sustain momentum after a 220% home-driven rally as potential easing of lira offshore-swap rules and Turkey's removal from FATF's grey list may support foreign inflows #emergingmarkets #banks #investments Read our full report on the terminal << https://lnkd.in/dBuCv2nf Bloomberg Intelligence Philip Richards Edmond C. Tomasz Noetzel, CFA Sarah Jane Mahmud Francis Chan Sergei Voloboev

China unleashes stimulus surge: A signal to monitor GCC petrochemical and metal stocks?   In a decisive effort to tackle the deceleration of the world's second-largest economy, China's central bank, the People's Bank of China (PBOC), has announced a sweeping stimulus package designed to reignite growth. With growing concerns that Beijing may fall short of its 5% annual growth target, the PBOC aims to invigorate the economy through measures including reduced borrowing costs, expanded bank lending capacities, increased liquidity, and mortgage relief for households.   Given China's position as the largest global consumer of petrochemicals and metals. Could any uptick in Chinese industrial activity or consumer demand signal a ripple effect, potentially boosting the value of petchem and metal stocks in the GCC? #UnitedSecurities #ChinaStimulus #GCCMarkets #PetrochemicalStocks #MetalStocks #EconomicGrowth #ChinaEconomy #PBOC #IndustrialDemand #CommodityMarkets #GlobalTrade #InvestorSentiment #MarketOutlook #GCCInvestments #EmergingMarkets #GrowthOpportunities

📉 China's central bank unexpectedly cuts key policy rates to support economy Today, the People’s Bank of China (PBOC) surprised markets by lowering the seven-day reverse repo rate to 1.7% from 1.8%, and by cutting benchmark lending rates by the same margin, for the first time since August 2023. The one-year loan prime rate (LPR) was lowered to 3.35% from 3.45% previously, while the five-year was reduced to 3.85% from 3.95%. The overnight rate on the PBOC standing lending facility (SLF) was cut by 10 bps to 2.55%. The seven-day and one-month rates were each lowered by 10 bps to 2.7% and 3.05%, respectively. The cuts come after China last week reported weaker-than-expected second-quarter economic data. Chinese bonds were slightly gaining after the central bank cut a policy interest rate. The yield on the 10-year sovereign note dropped 2 basis points and stabilized at 2.24%. The country’s stocks fell, as investors continued to express disappointment at a lack of strong stimulus measures. Analysts expect more rate cuts in China after the Fed begins its rate cut cycle. So, foreign investors increased their holdings of Chinese bonds in June for a 10th consecutive month, waiting for the bond further gains. As of the end of June, the value of bonds held by foreign investors set a new record of 4.31 trillion yuan ($593 billion), data released by the Shanghai Head Office of the PBOC showed. This amount increased by more than 1 trillion yuan during the past 10 months. #China #PBOC #InterestRates #EconomicPolicy #MarketNews #Bonds #MonetaryPolicy #FinancialNews #GlobalEconomy #RateCuts #ChineseMarket #EconomicSupport #FinanceUpdates #InvestmentNews #BondMarket #EconomicData

Our #Envoy of Country has followed their Central Banker movements and has analyzed Xi’s statements which contradict the realities of Chinas State of Union. China’s July 22 announcement that it would cut the one-year loan prime rate by 0.1 percentage point to 3.35 per cent came as a surprise to the market, and is seen as a move to shore up the country’s economy in the face of falling production levels. This rate cut ballyhooed by #China in unbelievable and this piece by The Banker affirms our assertions that Chinas economy, currency, credit markets are not healthy. China really cannot afford the projects announced and failures to see projects started tells the story. U.S. Department of the Treasury EU-China Business Association (EUCBA) European Investment Bank (EIB) European Central Bank European Commission The White House Knights of Malta (US) Sovereign State. Federation of Autonomous Priories of St.John https://lnkd.in/e27tkUCn

China lets the yuan weaken. They have held the rates steady but I think they will also cut interest rates slowly and gradually - leading to the RMB's continued weakness. Because this is bleeding obvious for the short term - it makes buying China's ultra long bond attractive to Mainland Chinese funds and banks. This defeats the purpose of increasing liquidity in the system through the sale of bonds - when banks lock up short term liquidity meant for loans into long term bonds to preserve their booked assets. PBOC governor warned against this behavior - and I think he wants them to think he means it - the next time. But what can he do? If the bonds issued are not bought, then the PBOC buys them up - it is also locking in liquidity that would be better served being loaned out for relatively safe, productive uses.

#Pakistan  #Exchangerate  #USD to PKR exchange rate #Forex rates in Pakistan #Open market currency rates in Pakistan #State Bank of Pakistan exchange rates #PKR to USD rate #Interbank exchange rates Pakistan

This week, the People’s Bank of China (PBOC) cut a series of benchmark rates in a surprise attempt to stimulate China’s underwhelming economic activity. Simultaneously, however, the PBOC’s move adversely impacted differentials between U.S. and Chinese 10-YR government bonds, sending spreads to their highest in over two decades. The near-term repercussions for the renminbi and, consequently, China’s commodity purchasing activity warrant monitoring as probable headwinds for 2H24 demand expectations: https://lnkd.in/g2A45b_x