PBOC leaves one-year Loan Prime Rate unchanged at 3.85% in June

Dhwani Mehta FXStreet

The People’s Bank of China (PBOC) leaves one-year Loan Prime Rate (LPR) unchanged at 3.85% in June while maintaining the five-year LPR at 4.65%.

74% of all participants in the snap Reuters survey conducted this week, predicted no change to the one-year LPR on Monday.

China’s cabinet announced last week that the government will keep liquidity ample by cutting banks’ required reserve ratio (RRR) while guiding market interest rates lower to boost the coronavirus-hit economy.

Additional details

“Injects 40 bln yuan through 7-day reverse repos.”

“Injects 80 bln yuan through 14-day reverse repos.”

“Sets 7-day reverse repo rate at 2.20% vs 2.20% previously.”

“Sets 14-day reverse repo rate at 2.35% vs 2.35% previously.”

Market reaction

AUD/USD consolidates the recovery gains below 0.6850 on the PBOC status-quo. The aussie adds 0.11% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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