UK House Prices Hold Steady in June as Annual Growth Misses Forecasts 
Global Financial Firms Shift Asia Expansion Focus to South Korea as China, India Face Caution 
Trump Suspends Some Morocco Fertilizer Tariffs to Ease U.S. Supply Shortage 
ECB Set to Raise Interest Rates as Energy Shock Fuels Eurozone Inflation Concerns 
Asian Currencies Slip as Dollar Holds Firm, Yen Near Four-Decade Low Ahead of Fed, Jobs Data 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
Asian Stocks Mixed as South Korea Slides on Profit-Taking, Japan and China Gain on Strong Factory Data 
ECB Keeps July Rate Options Open Amid Iran War Energy Price Risks 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Yen Falls to 40-Year Low as Markets Watch Japan Intervention and U.S. Jobs Report 
Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
India Manufacturing PMI Slows in June as Demand Weakens Despite Lower Cost Pressures 
Oil Prices Rise as U.S.-Iran Talks Keep Geopolitical Risks in Focus 
China Manufacturing PMI Edges Higher in June as Exports and AI Investment Boost Growth 
The People’s Bank of China (PBOC) held its benchmark loan prime rate (LPR) steady on Monday, maintaining a cautious stance as U.S.-China trade tensions intensified. The decision aligns with market expectations, as Beijing continues balancing economic stability with external pressure from Washington.
The PBOC kept the one-year LPR at 3.0% and the five-year LPR, a key benchmark for mortgage rates, at 3.50%. Both rates remain at record lows, signaling that China is committed to sustaining an accommodative monetary policy to counter persistent disinflation and sluggish domestic demand. The LPR, calculated using input from 18 major commercial banks, serves as the foundation for most lending and mortgage rates across the country.
Analysts widely anticipated the rate hold, citing Beijing’s desire to maintain policy flexibility amid geopolitical uncertainty. Recent threats from U.S. President Donald Trump to impose 100% tariffs on Chinese imports have added to market jitters, although he later softened his stance. China has indicated it is prepared to respond firmly if trade tensions escalate further.
Despite the central bank’s efforts, China’s economy continues to face headwinds. Recent data show weakening manufacturing activity, sluggish consumer spending, and continued disinflation — all weighing on growth momentum in the world’s second-largest economy. Economists believe that Beijing will likely roll out additional monetary and fiscal support measures in the coming months to bolster recovery and restore confidence.
By maintaining record-low interest rates, the PBOC aims to support lending, stimulate investment, and stabilize growth amid global uncertainty. However, policymakers are treading carefully to avoid financial risks while steering the economy through a challenging external environment.
