China likely to maintain lending rates even as economy slows: Reuters poll

Headquarters of the PBOC, the central bank, is pictured in Beijing

SHANGHAI/SINGAPORE (Reuters) - China is expected to leave benchmark lending rates unchanged on Monday, while more market participants project further monetary easing to aid the economy following weaker-than-expected second-quarter economic data, a Reuters poll showed.

A fragile yuan, China's lower interest rates versus other major economies, monetary policy divergence and narrowing interest margins at commercial banks remain the key constraints limiting Beijing's easing efforts, market watchers said.

The loan prime rate (LPR), normally charged to banks' best clients, is calculated each month after 20 designated commercial banks submit proposed rates to the People's Bank of China (PBOC).

By Reuters.
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