MNI BRIEF: China's April Loan Prime Rate Unchanged

China's Loan Prime Rate remained unchanged on Thursday, according to a People's Bank of China statement, in line with market expectation following the PBOS's decision to keep a key policy rate steady on April 17 due to the robust credit expansion and economic rebound.

The one-year LPR, based on the PBOC’s Medium-term Lending Facility rate and quotes submitted by 18 banks, was left at 3.65% and the five-year plus maturity was held at 4.3% – the eight consecutive month the rates have been left unchanged.

The Bank offered a net CNY20 billion through one-year MLF this month with the rate unchanged at 2.75%, the ninth month the PBOC left the rate steady. (See:MNI PBOC WATCH: LPR Rate Seen Held Steady)

Economists and analysts said the central bank will likely not keep a more dovish stance as both economic recovery and credit expansion have shown positive signs. In addition, the narrowed net-interest margins of lenders will also restrain the further reduction of LPR.