Remarks from an analyst at United Overseas Bank. Firstly on China's economy:
China’s economy continues to face the same set of challenges including COVID-19 resurgences and perhaps even greater pessimism in the domestic property market as well as high global energy and food prices
Which could be a prompt for lower rates ahead. Says that given these risks to the domestic economy:
we continue to see prospects for the 1Y loan prime rate to move slightly lower to 3.55% by end-3Q22 from current 3.70%
Loan Prime Rates (LPR) are set on the 20th of each month from the People's Bank of China. Preior:
Clues are given to cuts from the rates applied to medium-term loans (MLF). That is, any cut in the MLF rate indicates a likely cut to the LPR.