Our Scans · (FS.5.07) Inter-Bank Lending · Weekly Summary

• [New] The People's Bank of China left its one-year medium-term lending facility rate unchanged at 2.5%, as expected. CNBC
• The source of consternation appeared to be China's central bank trimming its one-year lending rate by 10 basis points and retaining its five-year rate, confounding analysts who had been expecting a 15 basis point cut. Ship & Bunker
• Banks are preparing for a CRE lending rebound as interest rates gradually fall, which could drive new loan originations in 2025. CRE Daily
• The US Federal Reserve is likely to keep interest rates higher for longer than the Bank of England, as the UK economy with its shorter-term mortgage lending structure and greater overall vulnerability to higher rates, weakens sooner. UK - EN - Institutional
• The Bank of Canada will likely continue to drop its target for the overnight lending rate into the first part of 2025, meaning buyers can expect their borrowing power to expand further. CNW Group
• The Reserve Bank of New Zealand will implement restrictions by the middle of 2024, which will likely limit home loan lending during boom times. NZ Herald
• The People's Bank of China is expected to keep key lending rates on hold on Monday, as traders in Asia digest the implications of the G7's stance on China and the tense and fluid situation in Washington regarding the U.S. debt ceiling standoff. SURPERFORMANCE
• With interest rates falling, banks are eyeing a potential return to form for CRE lending in 2025 after two years of reduced activity. CRE Daily
• There could be bad news for anyone with a mortgage this week, as speculation is growing that the Bank of Canada is getting ready to start raising lending rates again. CBC
• As inflation cools and the Bank of England is expected to start cutting interest rates in June, experts forecasted a rebound in lending growth to 3.5% for 2025. Yahoo Finance
• Banks could lower rates charged on new loans to spur more borrowing, and the People's Bank of China could ramp up its funding-for-lending schemes. DNyuz
• When risk increases as a result of foreign geopolitical events, domestic lending by U.S. banks is consistently and negatively impacted: Banks significantly tighten domestic lending standards and reduce lending to domestic firms. Federal Reserve Bank of Boston
• Many banks will spend the bulk of 2024 trying to tighten lending standards and diversify their balance sheets away from risky assets such as CRE loans and even safe assets such as long-term treasuries. Deloitte Insights
• Some analysts expect the PBOC to cut the benchmark lending rate, or loan prime rate, this month, citing recent deposit rate cuts by Chinese banks and an expected pause in the U.S. Federal Reserve's rate hikes. Reuters
• US banks are doling out fewer loans to businesses as lending standards tighten and demand weakens after 11 interest-rate hikes by the Federal Reserve, suggesting economic growth could slow as credit contracts. financialpost
• The People's Bank of China held key lending rates steady in a move widely expected by markets, after cutting banks' reserve requirements last week. Central Banking
• Banks operating in Australia have conservative lending practices that reduce the potential for systemic risks arising from commercial property markets. Reserve Bank of Australia
• The Fed on Wednesday raised its forecast in 2024 for the U.S. central bank's overnight lending rate to 5.1%, but lifted its outlook for economic growth. Reuters
• Climate-related regulation on large banks in Brazil caused a shift in lending to high-emitting sectors from large to small banks, further increasing risks. OMFIF
• Cuts in lending rates have raised hopes that mortgage levels have peaked, despite the Bank of England raising interest rates. Evening Standard

Last updated: 01 April 2025