PBOC may keep LPR unchanged – China Press

Dhwani Mehta FXStreet

The People’s Bank of China (PBOC) is expected to keep the loan prime rate (LPR) steady, in order to help solidify reductions in corporate loan rates, the Financial News reported on Thursday.

The Chinese central bank left the LPR unadjusted at 3.85% in January while holding the five-year LPR steady at 4.65%.

Key takeaways

“China's corporate loan rates are likely to be kept low due to low inflation risks and stable macro policies.”

“The PBOC seems content with the current interest rate levels while leaving the January MLF rate unchanged, while abundant credit and demand should support recovery.”

Market reaction

USD/CNY was last seen trading modestly flat at 6.4619, bouncing off daily lows of 6.4567.

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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