China to keep lending rates steady amid inflation risks
China will likely keep lending rates steady for a tenth month. Rising oil prices from Middle East conflict have delayed stimulus as inflation risks grow.
China is expected to maintain its benchmark lending rates for the 10th consecutive month this Friday. Market expectations for a steady rate environment come as rising global oil prices, fueled by intensifying Middle East tensions, introduce new uncertainties to the global inflation outlook. Beijing has established an economic growth target of 4.5% to 5% for 2026, a slight decrease from the 5% expansion recorded last year. This target, combined with stronger-than-anticipated economic activity data during the first two months of the year, has reportedly diminished the immediate need for aggressive stimulus measures to bolster the economy.
