CH 5-y Loan Prime Rate

China on Friday kept its main benchmark lending rates unchanged at the monthly fixing. Market watchers polled by Reuters had expected a trim as the Federal Reserve’s 50 basis point rate cut had given more room for China to lower its domestic borrowing costs without prompting a sharp decline in yuan. The People’s Bank of China (PBOC) said it would keep the one-year loan prime rate (LPR) at 3.35%, as well as the five-year LPR at 3.85%. The one-year LPR affects corporate and most household loans in China, while the five-year LPR acts as ...

Chinese banks kept their benchmark lending rates unchanged for August, as profit margins come under pressure and policymakers focus on the health of financial institutions. The one-year loan prime rate will stay at 3.35% and the five-year rate, a reference for long-term credit including mortgages, remains at 3.85%, according to a Tuesday statement from the People’s Bank of China. The moves were in line with the forecasts of all economists surveyed by Bloomberg. The decisions reflect a balancing act by China, after PBOC Governor Pan ...

The People’s Bank of China cut a key short-term policy rate for the first time in almost a year, stepping up support for the economy after growth disappointed and steering a shift toward a new policy benchmark. The seven-day reverse repo rate is lowered by 10 basis points to 1.7%, the PBOC said in a statement Monday. This aims to optimize the open market operation mechanism and increase financial support for the economy, it added. Chinese banks followed the move about an hour later by lowering their main benchmark lending rates, or ...

China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was 3.45 percent on Wednesday, unchanged from the previous month. The over-five-year LPR, on which many lenders base their mortgage rates, also held steady from the previous reading of 3.95 percent, according to the National Interbank Funding Center. Last month, China cut the over-five-year rate by 25 basis points to 3.95 percent, the largest drop in recent years. The one-year rate remained unchanged in February. A lower LPR is expected to shore up the ...

Constrained on all sides, China’s central bank is aiming to squeeze more value out of its policy actions by catching markets unaware with surprise easing aimed at putting a floor under the struggling economy. A record cut to a key lending rate earlier this week announced by the People’s Bank of China was just the latest unexpected move since Governor Pan Gongsheng took office last summer. At a press briefing last month, he shocked with an outsized cut to banks’ reserve requirement ratio. The moves reflect the PBOC’s effort to step up ...

After the relentless jawboning in recent days, many were expecting some further easing today from the PBOC, and Beijing did not disappoint when China cut the 5-year loan prime rate (LPR) - which influences mortgage rate pricing - and is also known as China's Libor (or rather SOFR since Libor no longer exists) by 25bp to to 3.95% on Tuesday, while holding the 1-year rate at 3.45%. The LPR cut is the largest since China revamped its loan pricing mechanism in 2019. China last trimmed the 5y LPR by 10bp in June 2023. chart As UBS ...