PBoC expected to maintain China's Loan Prime Rates

Today marks a busy day for economic reports in Asia. New Zealand's economic growth data for the fourth quarter of 2024 will be released. The country's economy is recovering slowly after significant interest rate cuts by the Reserve Bank of New Zealand. Later today, Australia will release its employment report for February. Analysts expect a solid increase in job growth and a stable unemployment rate. However, some signs of weakness in the job market have emerged, making these figures particularly interesting. In China, the People's Bank of China is set to announce its Loan Prime Rate (LPR) today. The focus has shifted away from the LPR, as the central bank has started using the 7-day reverse repo rate as its main tool for monetary policy. Currently, the one-year LPR is at 3.1%, and the five-year LPR is at 3.6%. A recent survey showed that most analysts expect the LPR to remain unchanged. Last year, the People's Bank of China made significant changes to its monetary policy framework. This included reducing the 7-day reverse repo rate to stimulate economic activity amid signs of slowdown. The adjustments aimed to enhance how monetary policy influences the economy and support growth more effectively.