China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
Trump Questions Housing Bill as He Prioritizes SAVE America Act 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
Trump Urges Gasoline Retailers to Cut Prices to $2.50 Per Gallon, Warns of Legal Action 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
Oil Prices Slip as U.S.-Iran Peace Talks and Strait of Hormuz Risks Keep Markets on Edge 
US Stock Futures Steady as Investors Await Payrolls Data and Monitor Iran Tensions 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Yen Falls to 40-Year Low as Markets Watch Japan Intervention and U.S. Jobs Report 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
South Korea Signals Possible Interest Rate Hike as Inflation Remains Elevated 
China’s central bank kept its benchmark lending rates unchanged in February, marking the ninth consecutive month of steady policy as officials navigate mixed economic signals and subdued domestic demand. The People’s Bank of China (PBOC) left the one-year loan prime rate (LPR) at 3.00% and the five-year LPR, which serves as a key reference for mortgage rates, at 3.50%, in line with market expectations.
The decision highlights Beijing’s cautious monetary policy stance as the world’s second-largest economy faces an uneven recovery. While export performance has shown resilience despite ongoing global trade uncertainties, domestic conditions remain fragile. Weak inflation, soft consumer spending, and sluggish credit demand continue to weigh on broader economic momentum. At the same time, persistent challenges in China’s property sector have added pressure to policymakers seeking to stabilize growth without triggering financial risks.
Economists note that the PBOC has opted for targeted liquidity measures rather than broad interest rate cuts. By relying on structural tools and administrative guidance to encourage lower lending costs, the central bank aims to support key sectors while protecting bank profit margins and limiting downward pressure on the yuan. This approach reflects concerns about narrowing net interest margins within the banking system and potential currency volatility in a shifting global rate environment.
Last year, Chinese authorities introduced several supportive measures, including reductions in key policy rates and cuts to banks’ reserve requirement ratios, to stimulate economic growth. However, recent signals from policymakers suggest a greater emphasis on structural reforms and targeted assistance instead of aggressive monetary easing.
By holding the loan prime rates steady, the PBOC appears focused on balancing economic stabilization with financial stability, as China works to strengthen domestic demand and ensure sustainable long-term growth.
