Global banks scale back China rate-cut calls, see policy rate on hold this year

SHANGHAI, April 8 (Reuters) – Major global investment banks now expect China to keep official interest rates steady this year, scaling back earlier rate-cut calls, as the impact from the Middle East conflict appears limited, even as Beijing maintains a loose policy stance. The receding rate cut expectations also come as China holds up better than its regional peers amid the Iran war, while the broader economy has shown early signs of a rebound. “Against the backdrop of China’s relative resilience amid Hormuz disruptions, better-than-expected activity data in January-February, and the producer price index (PPI) likely turning positive in March,…