People’s Bank of China 125bn yuan of 1 year Medium-term Lending Facility (MLF), 2.5%

The MLF rate setting sets the scene for the Loan Prime Rate (LPR) setting coming up on the 20th.

The unchanged rate, at 2.5%, for the MLF strongly suggests the one- and five-year LPRs will remain at the same rates also:

  • 3.45% and 3.95% respectively

This is usually (not always) a reliable guide that LPR rates will remain unchanged. That didn’t happen in February. The MLF was unchanged in February but we got a big cut to the 5-year LPR.

This article was written by Eamonn Sheridan at www.forexlive.com. Source