More Cuts from PBOC are Expected

Economists are forecasting another cut in China’s benchmark one-year lending rate in the third quarter as policy makers step in to cushion the nation’s economic slowdown.

The lending rate is expected to fall 0.25 percentage point to 4.85 percent in the third quarter, according to the median of 23 economists. Analysts also expect banks’ reserve ratios will be lowered, the median of 24 analysts showed.

The survey follows China’s third interest-rate cut in six months announced Sunday after exports and imports slid in April, underscoring the economy’s struggle to meet Premier Li Keqiang’s 2015 growth target of about 7 percent. April consumer prices remained subdued while producer prices fell for a 38th month, leaving scope for additional policy measures.