PBOC Seen to Maintain LPR Rate in Oct: Daily

The PBOC is likely to keep the loan prime rate unchanged when it issues its monthly quotation guidance on Tuesday, the Securities Daily reported citing market analysts. The central bank has kept the rate of medium-term lending facilities remained unchanged this month, an indication that it intends to maintain the current interbank rates, the Daily said. Banks also lack the motivation to lower their October LPR quotes they submit to the PBOC as the average marginal cost of funds hasn't changed significantly, the newspaper said citing Wang Qing, chief analyst at Golden Credit Rating. The one-year LPR has dropped 30 bps so far this year to 3.85%, while the five-year LPR sits at 4.65% after decreasing 15 bps.