Free Trial

MNI BRIEF: China’s May Loan Prime Rate Unchanged

MNI (Singapore)
(MNI) Beijing

China's Loan Prime Rate remained unchanged on Monday, according to a People's Bank of China statement, in line with market expectation following the PBOC's decision to keep a key policy rate steady on May 21.

The decision comes despite calls for a cut as the economic recovery softens. 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 nineth consecutive month the rates have been left unchanged. The Bank offered a net CNY25 billion through one-year MLF this month with the rate unchanged at 2.75%, the 10th month the PBOC left the rate steady. (See:MNI PBOC WATCH: LPR Change Unlikely Despite Calls For Cut)

Policy advisors and economists called on the PBOC to cut policy rates to lower investment costs and reduce debt burdens as April's the economic performance disappointed, raising concerns over the recovery's sustainability.


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.