Lee Sue Ann, Economist at UOB Group, expects the PBoC to leave the policy rate unchanged at its next event on Thursday.

Key Quotes

“We have updated our forecast for the 1Y LPR and the 5Y & above LPR to be further lowered to 3.70% and 4.55% respectively by 2Q22.”

“While this reflects monetary policy divergence between PBoC and other major global central banks (which are either tightening or on the cusp of tightening interest rates), it should be noted that the cuts from PBoC are very minor and limited.”