Economist at UOB Group Lee Sue Ann suggests the PBoC could reduce further the policy rate in the next months.

Key Quotes

“China’s economy continues to face the same set of challenges including COVID-19 resurgences and perhaps even greater pessimism in the domestic property market as well as high global energy and food prices.”

“In view of higher domestic risks, we continue to see prospects for the 1Y loan prime rate (LPR) to move slightly lower to 3.55% by end-3Q22 from current 3.70%.”