AsianFin -- China is expected to keep its benchmark lending rates unchanged at Monday’s monthly fixing, according to a Reuters survey, even as market participants bet on further stimulus measures to counter mounting pressure from an escalating U.S.-China trade war.
Policymakers face a delicate balancing act. The Chinese yuan has come under renewed pressure following a fresh round of tariffs imposed by U.S. President Donald Trump, while narrowing interest margins at banks continue to constrain the room for additional monetary easing.
Despite the pause, expectations are growing that Beijing may roll out targeted support to stabilize growth and shield the economy from further external shocks.