Reminder – PBOC monetary policy interest rate decision due Wednesday evening, US time

The TL;DR on this post is that there is no rate change expected from the People’s Bank of China.

On Monday the Bank set the Medium-term Lending Facility (MLF) unchanged:

• People’s Bank of China set MLF rate at 2.5% (expected 2.5%, prior 2.5%)

The MLF rate sets the scene for the monthly Loan Prime Rate (LPR) announcement, due on the 20th. Current LPR’s

• 1-year Loan Prime Rate 3.45%
• 5-year Loan Prime Rate 3.95%

• the 5-year was cut in February: PBoC’s largest 5 year LPR rate cut ever. The 5-year is a benchmark for mortgage rates in China and a big part of the reasoning behind the PBoC cut was support for the deeply troubled property sector.

The People’s Bank of China will announce the LPRs around 0115 GMT (2115 US Eastern time).

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