SHANGHAI : China is expected to keep its benchmark lending rate unchanged for the 16th straight month at its August fixing on Friday, but some traders and analysts believe a cut may be needed soon amid signs the country's economic recovery is losing steam, a Reuters survey showed.
None expected changes to the five-year tenor - which influences the pricing of mortgages, an area where authorities are keeping a tighter grip to curb rising home prices.Official data this week showed China's factory output and retail sales growth slowed sharply in July as new COVID-19 outbreaks and floods disrupted business operations, and some analysts believe August readings could be worse.
Policy insiders told Reuters earlier in August that China is poised to quicken spending on infrastructure projects while the central bank supports the economy in other ways.