The People’s Bank of China left its Loan Prime Rates (LPRs) unchanged, as was expected.
1-year LPR at 3.35%
5-year LPR at 3.85%
Both were lowered by 10bp in July. Most new and outstanding loans in China are based on the
one-year LPR, while the five-year rate influences the pricing of
mortgages.
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The reference rate setting is due next, and could be interesting:
Yuan rate setting coming up – may flip for the first time in months
People’s Bank of China Governor Pan Gongsheng
This article was written by Eamonn Sheridan at www.forexlive.com.
