Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: PBOC Keeps LPR Unchanged For 16th Month

MNI (Singapore)

China's central bank on Friday left its benchmark rate for loans unchanged for the 16th straight month, according to a statement on the People's Bank of China website.

The Loan Prime Rate, guiding companies' cost of borrowing, remains at 3.85% for the one-year maturity and 4.65% for five years. Market participants watch the LPR for any indications the PBOC would lower interest rates.

The PBOC had left the one-year Medium-term Lending Facility rate which is viewed as being closer to market rates and is linked to LPR, at 2.95% on August 15 when it rolled out the maturing CNY700 billion MLF with a renewed CNY600 billion.

Since the previous LPR reform in August 2019, the PBOC has cut 46 bps off the one-year LPR and 20bps off the five-year. In April 2020, after a 6.8% contraction in Q1 GDP, the PBOC cut the one-year LPR by 20 bps and the five-year by 10 bps, the biggest cuts since the LPR mechanism was reformed in August 2019.


To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.