UBS has followed a string of Wall Street banks that have cut their growth forecasts for China. Monday also saw troubling moves on the lending-rate front,...
— UBS strategists led by Ning Zhang Wall Street’s darkening view on China continued on Monday as UBS strategists joined JP Morgan Chase & Co., Barclays, Morgan Stanley and Nomura in cutting the country’s growth prospects amid a property downturn.
The one-year loan prime rate was lowered by 10 basis points to 3.45%,while the five-year LPR was held at 4.2%, the People’s Bank of China said. The country’s sluggish recovery from its COVID lockdowns has been a dead weight for that sector in particular, whose poster child has been property developer Country Garden Holdings 2007, -2.63%.
The LPR is the rate charged by banks to their best clients, said Michelle Lam and Wei Yao, with many new and outstanding loans are based on that 1-year LPR, which is set by banks. The 5-year, meanwhile, has influence on mortgage pricing, and is set by 18 commercial banks who propose a rate to the PBOC monthly.
BCA Research analysts told clients in a note that China could be entering a liquidity trap, making small steps on interest rates by the PBOC an insufficient tool to boost the economy.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street analyst says Apple could buy ESPNDaniel Ives of Wedbush says that Apple would be interested in buying ESPN from Disney even if such a deal would cost $80 billion.
Read more »
Wall Street analysts take opposite views on Insulet following share price decline By Investing.comWall Street analysts take opposite views on Insulet following share price decline
Read more »
Top Wall Street analysts pound the table on these 5 stocksTipRanks’ analyst ranking service pinpoints Wall Street’s best-performing stocks, including Amazon and Netflix.
Read more »
Here are Monday's biggest analyst calls: Apple, Amazon, Nvidia, Disney, Salesforce, Palo Alto & moreHere are Monday's biggest calls on Wall Street.
Read more »