PBOC Likely to Hold Policy Rate Steady Throughout 2026 -- Market Talk
Dow Jones07-22
0744 GMT - PBOC is likely to hold its policy rate steady throughout the end of 2026, BofA Securities economists say in a commentary. They point out that there are limited room for further cuts given its concerns on bank net interest margins, which could be pressured by further reduction in lending rates relative to funding costs. The persistent negative interest rate differential with the U.S. remains a constraint, with the Fed maintaining its policy rate amid solid U.S. growth and looming inflation, BofA says. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
July 22, 2025 03:44 ET (07:44 GMT)
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