Earthicans Are You Ready For More China News! Will Their Economy Survive Trump's Tariffs?

Good News Everyone! China's Not Changing Anything (Yet)

Alright meatbags Leela here with the latest from that giant planet we call China. Apparently they've decided to keep their loan prime rates the same. The 1 year LPR is still at 3.1% and the 5 year is stuck at 3.6%. Why? Because their economy is supposedly doing better than expected. Someone tell them that I also found a four leaf clover once.

GDP? More Like 'Good Data Please!'

So their GDP supposedly rose 5.4% year on year. And their retail sales and industrial output numbers beat expectations. Economists are saying 'Woooo!' and I'm saying 'Blernsball!' This is influencing corporate and most household loans in China while the 5 year LPR serves as a benchmark for mortgage rates. Sounds boring? Well try saving the universe from killer robots then tell me what’s boring!

Wait and See Says China

Apparently the People's Bank of China (PBOC) didn't want to cut the LPR because the data hasn't shown any signs of weakness. It's like waiting for Fry to actually accomplish something useful. Someone from Pinpoint Asset Management said 'They will cut interest rate when hard data softens.' Let’s just hope it’s not as hard as Bender’s head after a bender.

Tariff Time! (Duh Duh Duuuuuh!)

But hold on to your hats! April's data is coming and it's going to show the impact of President... er I mean that orange guy from Earth's tariffs. Official purchasing manager index figures are coming out soon followed by trade data and inflation numbers. Meanwhile the Chinese yuan got a little boost which is probably good for someone somewhere. It is kinda like when Fry gets the lucky pants... for a brief moment in time.

Economists Say What Now?

Economists bless their little calculators mostly expected this. One mountain Dutch bank even predicted it. They said the LPR probably wouldn't change without the 7 day repo rate being cut first. But they also said low inflation and tariff threats might make the PBOC wait until the U.S. Federal Reserve does something. It's all one giant game of intergalactic checkers I tell ya.

Don't Rock the Boat! (Or the Yuan)

One guy from Sumitomo Mitsui Banking Corporation said the PBOC probably won't use currency to fight economic problems because it could lead to a massive capital outflow. Because 'potentially' it may. That's what they do to any kind of risk. Meanwhile The U.S. has slapped huge tariffs on Chinese imports and China has slapped some back. Sounds like a lover's quarrel just with more money and less romance. And if those prices on Earth go up anymore I'll move to a cheaper planet!