DBS Group Analysis economist Chua Han Teng expects the Folks’s Financial institution of China to maintain the 1-year Mortgage Prime Fee at 3.00% on February 24, as January knowledge are nonetheless unfolding. The report says coverage stays cautiously accommodative, mirrored in a decrease USD/CNY fixing under 7.0, with reliance on structural instruments and broader easing anticipated towards the second half of 2026.
Mortgage Prime Fee seen unchanged for now
“The PBOC is predicted to maintain the 1-year Mortgage Prime Fee (LPR) unchanged at 3.00%, as January financial knowledge have but to completely unfold.”
“The central financial institution is sustaining a cautiously accommodative financial coverage stance amid heightening geopolitical tensions.”
“This stance is being mirrored in a decrease USD/CNY fixing, which has breached the psychological 7.0 degree.”
“The PBoC has been relying extra on structural instruments to help focused sectors reasonably than reducing the Mortgage Prime Fee or the 7-Day Reverse Repo Fee.”
“We count on the PBoC to renew broader easing towards 2H.”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor.)
