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MNI PBOC WATCH: May LPR To Remain Steady As Market Rates Fall

MNI (Singapore)
(MNI) Beijing

The LPR will remain on hold while the PBOC focuses CGB yield declines and its crusade against idle funds.

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China’s reference lending rate is likely to remain unchanged in May as the central bank aims to steady the policy environment following the fall in market rates and as it pursues its mission to curb idle funds inside the financial system.

The Loan Prime Rate, based on People’s Bank of China’s medium-term lending facility (MLF) rate and quotes submitted by 20 banks, will hold at 3.45% for the one-year maturity and 3.95% for the over-five-year maturity on Monday. The rate last changed in February when the five-year plus maturity was reduced 25 basis points, while one-year tenor held steady. (See MNI PBOC WATCH: LPR Steady As PBOC Warns Of Overly Low Rates)

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China’s reference lending rate is likely to remain unchanged in May as the central bank aims to steady the policy environment following the fall in market rates and as it pursues its mission to curb idle funds inside the financial system.

The Loan Prime Rate, based on People’s Bank of China’s medium-term lending facility (MLF) rate and quotes submitted by 20 banks, will hold at 3.45% for the one-year maturity and 3.95% for the over-five-year maturity on Monday. The rate last changed in February when the five-year plus maturity was reduced 25 basis points, while one-year tenor held steady. (See MNI PBOC WATCH: LPR Steady As PBOC Warns Of Overly Low Rates)

Keep reading...Show less