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China seen cutting key lending benchmarks as economy slows

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China is widely expected to cut key lending benchmarks on Tuesday in the first such easing in 10 months, a Reuters survey showed, as authorities seek to shore up a slowing recovery in the world’s second-largest economy.

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Twenty-one, or nearly 66%, of all respondents expected the one-year LPR – on which most new and outstanding loans are based – to be cut by 10 basis points to 3.55% from 3.65%. Others projected the cut to range from five to 15 bps.

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