China monthly loan interest rate setting due today – rate cut expected

  
  Analysis
ICYMi:
0130 GMT China 1 and 5 year loan prime rates

  • 1 year expected 3.85%, prior 4.05%
  • 5 year expected 4.65%, prior 4.75%

The expectations for a rate cut today are based on the PBOC providing further support for the economy, which has been hit hard by the coronavirus and the response. We had Q1 GDP data last week, reported its first fall on record in Q1.

March activity data highlighted the dire state of domestic demand, wityh retail sales collapsing.
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