China's central bank on Wednesday left its benchmark rates for loans unchanged, according to a statement on the People's Bank of China website. The move was expected by some market analysts after the PBOC cut the reserve requirement ratio and left unchanged another key policy rate last week.
The Loan Prime Rate, guiding companies' cost of borrowing, remains at 3.70% for the one-year maturity and 4.60% for five years. The PBOC left the rate on 1-year Medium-term Lending Facility, seen as being close to market rates and linked to LPR, at 2.85% on April.15 when it rolled over the maturing CNY150 billion MLF.
The central bank last cut 1- year LPR both in January and December by total 15 bps, after keeping the same benchmark for 19 months. The 5-year LPR was cut by 5 bps in January after being left unchanged for 20 months.