PBOC sets one and five year loan prime rates unchanged

People’s Bank of China Loan Prime Rate (LPR) setting.

1-year set at 3.1%

  • expected 3.1% and prior 3.1%

5-year set at 3.6%

  • expected 3.6%, prior 3.6%

***

As I posted earlier:

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The one-year LPR and the over-five-year LPR are currently at 3.10% and 3.60%, respectively.

Recent moves:

  • July 22, 2024: The one-year LPR was reduced by 10 basis points to 3.35%, and the over-five-year LPR was lowered by 10 basis points to 3.85%.

  • In August and September 2024, the People’s Bank of China (PBOC) maintained the Loan Prime Rates (LPR) at the levels set in July.
  • October 21, 2024: The one-year LPR was further reduced by 25 basis points to 3.10%, and the over-five-year LPR was decreased by 25 basis points to 3.60%.

  • November 20, 2024: Both the one-year LPR and the over-five-year LPR were maintained at 3.10% and 3.60%, respectively.

  • December 20, 2024: The PBOC kept both the one-year LPR and the over-five-year LPR unchanged.

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