Goldman Sachs Sees Fed Holding Interest Rates Steady Until 2027 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Kevin Warsh Faces Early Fed Test as Inflation Risks Challenge Rate-Cut Expectations 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Taiwan Central Bank Likely to Keep Interest Rates Unchanged Through 2027 
New Zealand Unemployment and Inflation Debate Intensifies Ahead of 2026 Election 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
German Industry Employment Falls to Lowest Level in a Decade 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
China has lowered its benchmark lending rates for the first time since October, signaling a renewed effort to stimulate its slowing economy. The People's Bank of China (PBOC) cut the one-year loan prime rate (LPR) by 10 basis points to 3.0%, down from 3.1%. The five-year LPR, which is closely tied to mortgage rates, was also reduced by 10 basis points to 3.5% from 3.6%.
These rate cuts come shortly after Beijing unveiled a series of sweeping monetary easing measures aimed at boosting liquidity and supporting growth. The majority of new and outstanding loans in China are linked to the one-year LPR, making this move significant for businesses and consumers alike. The five-year LPR’s reduction is expected to ease mortgage burdens and potentially support China’s struggling real estate sector.
The cuts follow a broader trend of economic stimulus as Chinese authorities seek to counteract the impact of persistent trade tensions with the United States and a challenging global economic environment. Earlier this month, the central bank implemented major liquidity injections to shore up market confidence and increase credit availability.
Investors are closely watching Beijing's next steps, as weak domestic demand and global headwinds continue to pressure the world’s second-largest economy. By adjusting interest rates, the PBOC aims to encourage lending, stabilize markets, and support long-term economic recovery.
The policy shift highlights China's commitment to proactive monetary policy as it grapples with complex challenges, including the fallout from U.S.-China trade disputes and structural weaknesses within the domestic economy. With global markets responding to China’s monetary stance, further easing may follow if growth remains under pressure.
