SHANGHAI (Reuters) – China is widely expected to trim its main policy and benchmark lending rates on Friday, a Reuters poll showed, after the Federal Reserve’s outsized interest rate cut removed some of the risks around sharp yuan declines.
Monetary policy divergence and a weakening have been the key constraints limiting Beijing’s efforts to loosen policy over the past few years.
But with the U.S. central bank kicking off its monetary easing cycle with a larger-than-usual half-percentage-point reduction this week, analysts and traders believe Beijing has more room to manoeuvre on monetary policy.
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).
In a Reuters survey of 39 market watchers conducted this week, 27, or 69%, of all respondents expected both the one-year and five-year LPRs to be…
