PBOC rates seen on hold until fourth quarter

Beijing

ECONOMISTS now see China's central bank keeping its main interest rate on hold until the fourth quarter, when policymakers will lower it to help safeguard a stabilising expansion.

The People's Bank of China (PBOC) will hold its benchmark one-year lending rate at a record low of 4.35 per cent through the third quarter before cutting it to 4.1 per cent in the fourth quarter, economists said in an April 15-20 survey by Bloomberg. That compares with projections in the March survey for a reduction to 4.1 per cent in the second quarter and another decrease to 3.85 per cent in the fourth quarter.