Is PBOC Staying Patient as China’s Recovery Remains Uneven?

📌 A Reuters poll of 30 market experts showed unanimous expectations that PBOC will keep its benchmark loan prime rates unchanged at the upcoming review, with the 1-year LPR at 3.00% and the 5-year LPR at 3.50%.
🏦 If confirmed, this would mark the 13th consecutive month of unchanged LPR settings, suggesting that policymakers are still prioritizing caution rather than moving quickly toward broader monetary easing.
📊 The key backdrop remains China’s uneven economic recovery. Manufacturing and exports continue to show relative resilience, while domestic consumption, the property sector and the labor market remain areas that require close monitoring.
🌏 For markets, the news is not a major surprise, but it reinforces the view that Beijing is still in wait-and-see mode before taking stronger action. A small rate cut later this year remains possible if domestic demand weakens more clearly.
#ChinaEconomy