China is likely to keep its benchmark lending rates steady on Wednesday, according to a Reuters poll. Rate cuts last month have impacted banks' profits, and the yuan is facing pressure with Donald Trump's return to the White House. Beijing has introduced various stimulus measures since late September to boost the economy and meet growth targets. In October, Chinese lenders reduced lending benchmarks significantly to boost economic activity. Some analysts suggest that Beijing may hold off on making major moves until Trump's inauguration in January to gauge his policy direction. The loan prime rate (LPR) is determined monthly by 20 commercial banks submitting proposed rates to the People's Bank of China (PBC). In a recent survey of 28 market analysts, all respondents predicted that both the one-year and five-year LPRs would remain unchanged. A trader at a Chinese bank noted that the sharp reduction in LPRs in October makes another cut unlikely this month. Trump's plan to impose tariffs of 60 per cent or more on Chinese goods, along with other inflationary policies like tax cuts, is expected to keep US interest rates high, affecting the currencies of trading partners. Attribution: Reuters Subediting: Y.Yasser
