China is widely expected to cut key lending benchmarks on Tuesday in the first such easing in 10 months.
-term policy rates last week, signalling it is about to embark on another round of loosening in monetary settings in a push to rev up the recovery.
Twenty-one, or nearly 66%, of all respondents expected the one-year LPR - on which most new and outstanding loans are based - to be cut by 10 basis points to 3.55% from 3.65%. Others projected the cut to range from five to 15 bps. "However, the biggest risk is that rate cuts can be ineffective when households and businesses are excessively conservative, busy deleveraging and paying off debt."cabinet
Despite strong consensus of cuts to the LPR on Tuesday, market participants are divided on the size of the reductions. Some expect the mortgage reference rate could be trimmed by a deeper cut to aid the ailing property sector.
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