China’s Loan Prime Rates (LPR) decision is set to be announced today by the People’s Bank of China. The expectation is for a hold decision, especially after the Medium-term Lending Facility (MLF) rate was left unchanged earlier this week at 2.5%. The current LPR rates stand at 3.45% for the 1-year Loan Prime Rate and 3.95% for the 5-year Loan Prime Rate.
In February, the 5-year LPR was cut, marking the PBoC’s largest 5-year rate cut ever. This cut was aimed at providing support to the struggling property sector in China. The 5-year LPR is a crucial benchmark for mortgage rates in the country.
Meanwhile, New Zealand is facing economic challenges, with data on economic growth or contraction due to be released soon. The country is already in a recession, with consecutive quarters of economic contraction. Inflation in New Zealand is at 4% y/y, well above the target rate. The Reserve Bank of New Zealand (RBNZ) has kept rates steady at 5.5% for the past seven meetings, and another hold decision is anticipated at the next meeting on July 10th.
During the recent RBNZ meeting, Governor Orr hinted at a possible rate cut towards the end of the year or early next year. The economic outlook for New Zealand remains uncertain, and any negative data could further extend the recession.
It is important to keep an eye on these economic indicators as they not only impact the respective countries but also have implications for the global economy. The decisions made by central banks like the PBoC and the RBNZ can influence market sentiments and investor confidence.
As investors and traders navigate through the volatility in the financial markets, staying informed about key economic events and data releases is crucial. The ForexLive economic data calendar provides a snapshot of these events, helping individuals make informed decisions when it comes to their investments.
In conclusion, the upcoming announcement of China’s LPR decision and New Zealand’s economic data release will be closely watched by market participants. The outcomes of these events will provide valuable insights into the economic conditions of these countries and their impact on the broader financial landscape. Stay tuned for updates on these developments.
