MNI BRIEF: China’s Sept Loan Prime Rate Unchanged
China's Loan Prime Rate remained unchanged on Wednesday, 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 Sept 15.
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: China To Keep LPR Steady, Q4 Rate Cut Eyed). The bank offered a net CNY191 billion through one-year MLF this month with the rate unchanged at 2.50%.
Economists estimated the PBOC would cut policy rates in Q4 should Q3 GDP – due Oct 18 – print below expectations considering uncertainty over economic performance and real-estate sector recovery, which would guide down LPR then.