Free Trial

MNI BRIEF: China's January Loan Prime Rate Unchanged

MNI (Singapore)
(MNI) Beijing

China's reference lending rate remained unchanged on Friday, according to a statement on the People's Bank of China website, which was in line with market expectations as the central bank kept a key policy rate steady on Monday.

The Loan Prime Rate, based on the rate of PBOC’s Medium-term Lending Facility and quotes submitted by 18 banks, remains at 3.65% for the one-year maturity and 4.3% for over five years. The PBOC provided a net CNY79 billion MLF last week, the second consecutive monthly net injection.(See: MNI PBOC WATCH: LPR On Hold, But Ample Tools To Boost Growth)

However, advisors and analysts said the PBOC should guide the over-5-year LPR down to boost long-term credit demand among households and companies, and that there is still a chance for policy rates cut in the first quarter.

True

To read the full story

Close

Why MNI

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.