By The People’s Bank of China (PBOC) maintained its one-year and five-year loan prime rates (LPR) at record lows of 3.10% and 3.60%, respectively, reinforcing its preference for fiscal measures over monetary easing. This decision comes as Beijing seeks to stabilize the yuan and navigate external pressures, including heightened U.S. tariffs on Chinese goods.
While China’s Q1 GDP growth surpassed expectations at 5.4%, concerns over prolonged trade disputes with the U.S. have kept investors wary. The Biden administration’s latest tariff hikes on Chinese steel, aluminum, and tech products have intensified economic headwinds, prompting Chinese policymakers to prioritize domestic consumption-boosting measures such as subsidies and social welfare expansions.
Across the Asia-Pacific, markets responded unevenly. India’s Sensex and Nifty rose on strong corporate earnings, while Japan’s Nikkei fell sharply amid global risk-off sentiment. With Hong Kong and Australia closed for Easter, trading activity remained subdued. Meanwhile, U.S. futures dipped following another volatile week on Wall Street, highlighting persistent investor anxiety over interest rates and trade policies.