SHANGHAI, Oct 19 (Reuters) - China's benchmark lending rate
is likely to remain steady for a sixth straight month at its
October fixing on Tuesday, after the central bank left rates on
its medium-term lending facility (MLF) loans unchanged last
week, a Reuters survey showed.
Twenty-five out of 28 traders and analysts in a snap Reuters
poll, or nearly 90%, predicted no change in either the one-year
Loan Prime Rate (LPR) or the five-year tenor
The one-year LPR is now 3.85% after two cuts this year, the
five-year rate at 4.65%.
Many analysts and economists expect the rates will remain
unchanged through the rest of the year, but the authorities will
keep conditions accommodative to support recovery in the world's
second-largest economy from coronavirus disruption.
The expectations for the steady fixing this month came as
the People's Bank of China (PBOC) kept borrowing costs on the
medium-term lending facility unchanged for the sixth month in a
row last week.
The MLF is one of the PBOC's main tools in managing
longer-term liquidity in the banking system and serves as a
guide for the LPR.
Official data on Monday showed that China's economic
recovery accelerated in the third quarter as consumers shook off
their coronavirus caution, although the weaker-than-expected
headline growth suggested persistent risks for one of the few
drivers of global demand.
The LPR is a lending reference rate set monthly by 18 banks.
All 28 responses in the survey were collected from selected
participants on a private messaging platform.
(Reporting by Hongwei Li, Steven Bian, Xiangming Hou and Andrew
Galbraith; writing by Winni Zhou; editing by Larry King)