Following the March 20th rate decision, where the People's Bank of China (PBoC) held its benchmark interest rates steady on, defying market forecasts amid widespread disruptions to businesses and activity from the COVID-19 crisis, the PBoC sets 1-year loan prime rate at 3.85% vs 4.05% a month earlier.
Key notes
- PBoC sets 1-year loan prime rate at 3.85% vs 4.05%
- China sets 5-year loan prime rate at 4.65% vs 4.75% a month earlier.
- China cuts 1-year, 5-year loan prime rates.
- China cuts 1-year loan prime rate by 20 bps, 5-year loan prime rate by 10 bps.
About PBoC Interest Rate Decisions
The PBoC Interest Rate Decision is announced by the People´s Bank of China. If the PBoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CNY. Likewise, if the PBoC has a dovish view on the Chinese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.
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