MNI BRIEF: China’s Oct Loan Prime Rate Unchanged

China's Loan Prime Rate remained unchanged on Friday, 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 October 16.

The one-year LPR, based on the PBOC’s Medium-term Lending Facility rate and quotes submitted by 18 banks, was left at 3.45% and the five-year plus maturity was held at 4.2%. (See MNI PBOC WATCH: Q3 Economic Rebound Lowers Rate Cut Chance). The central bank kept its one-year medium-term lending facility rate steady on Monday at 2.5%, but pumped about CNY289 billion of MLF into the interbank market, the largest monthly net injection in 33 months.

Economists lowered the chance of the PBOC to reduce policy rates after Q3’s strong-than-expected economic performance and as the yuan passes through a period of weakness. According to the National Bureau of Statistics, China GDP expanded 4.9% y/y in Q3, beating the 4.5% y/y expectation thanks to robust consumption and resulting in a 1.3% q/q rise. (See MNI INTERVIEW: China GDP To Beat Expectations- Ex PBOC's Sheng)