CNY 5-y Loan Prime Rate
Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future;
This is a benchmark lending rate set by the People's Bank of China in its effort to influence short-term interest rates as part of its monetary policy strategy;
- CNY 5-y Loan Prime Rate Graph
- History
Expected Impact / Date | Actual | Forecast | Previous |
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Jun 19, 2024 | 3.95% | 3.95% | 3.95% |
May 19, 2024 | 3.95% | 3.95% | 3.95% |
Apr 21, 2024 | 3.95% | 3.95% | 3.95% |
Mar 19, 2024 | 3.95% | 3.95% | 3.95% |
Feb 19, 2024 | 3.95% | 4.10% | 4.20% |
Jan 21, 2024 | 4.20% | 4.20% | 4.20% |
Dec 19, 2023 | 4.20% | 4.20% | 4.20% |
Nov 19, 2023 | 4.20% | 4.20% | 4.20% |
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- CNY 5-y Loan Prime Rate News
The unchanged rates were widely expected after the MLF was unchanged earlier this week: People's Bank of China set MLF rate at 2.5% (expected 2.5%, prior 2.5%). The hold today is despite subdued economic data and widespread expectations that the Bank will be forced to cut rates at some stage. A critical constraint on the PBOC cutting rates is the wide yield gap with the US and the pressure on the yuan this is entailing. The PBOC is easing back on its dampening on the yuan weakness though: The PBOC USD/CNY fixing is coming up soon - ...
Chinese banks left their benchmark lending rates unchanged following the central bank’s decision last week to hold a key rate on loans it offers to lenders. The one-year loan prime rate was held at 3.45% on Monday as expected by economists surveyed by Bloomberg. The five-year rate, a reference for mortgages, was kept at 3.95%, according to the People’s Bank of China, in line with forecasts. China’s economic recovery has been driven by strength in the industrial sector, but domestic demand has remained stubbornly weak as the property ...
The unchanged rates were widely expected after the MLF was unchanged last week: • People's Bank of China set MLF rate at 2.5% (prior 2.5%). 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. • PBOC Rate CUT ___ (LPR): 1-year 3.45% (prior 3.45%) 5-year 3.95% (prior 4.20%). • The 1 year rate was last changed in August 2023: PBOC Loan Prime Rates (LPR) CUT: 1-year 3.45% (prior 3.55%) & 5-year 4.2% ...
China's one-year loan prime rate (LPR), a market-based benchmark lending rate, was 3.45 percent on Wednesday, unchanged from the previous month. The over-five-year LPR, on which many lenders base their mortgage rates, also held steady from the previous reading of 3.95 percent, according to the National Interbank Funding Center. Last month, China cut the over-five-year rate by 25 basis points to 3.95 percent, the largest drop in recent years. The one-year rate remained unchanged in February. A lower LPR is expected to shore up the ...
Constrained on all sides, China’s central bank is aiming to squeeze more value out of its policy actions by catching markets unaware with surprise easing aimed at putting a floor under the struggling economy. A record cut to a key lending rate earlier this week announced by the People’s Bank of China was just the latest unexpected move since Governor Pan Gongsheng took office last summer. At a press briefing last month, he shocked with an outsized cut to banks’ reserve requirement ratio. The moves reflect the PBOC’s effort to step up ...
After the relentless jawboning in recent days, many were expecting some further easing today from the PBOC, and Beijing did not disappoint when China cut the 5-year loan prime rate (LPR) - which influences mortgage rate pricing - and is also known as China's Libor (or rather SOFR since Libor no longer exists) by 25bp to to 3.95% on Tuesday, while holding the 1-year rate at 3.45%. The LPR cut is the largest since China revamped its loan pricing mechanism in 2019. China last trimmed the 5y LPR by 10bp in June 2023. chart As UBS ...
Chinese banks cut a key reference lending rate for mortgages by the most on record, ramping up support for the beleaguered property sector. The five-year Loan Prime Rate, a reference for mortgages, was lowered by 25 basis points to 3.95%, according to a statement by the People’s Bank of China on Tuesday. It was the first cut in eight months, and the largest since that rate was introduced in 2019. Nine of the 12 economists polled predicted a reduction, but none by that much. The one-year rate was maintained at 3.45%. Ten of the 19 ...
post: CHINA SLASHES 5-YEAR LPR BY 25 BASIS POINTSPBOC Rate Cut (LPR): 1-year 3.45% (prior 3.45%) 5-year 3.95% (prior 4.20%) People's Bank of China policy rate setting. LPRs set at: • 3.45% for the one-year (previously 3.45%) • 3.95% for the five-year (previously 4.20%) • first cut to the 5-year since August • 25bp is the largest cut ever The 5-year rate serves as an influence on mortgage rates. The cut to the 5-year will therefore be a positive for China's deeply troubled property sector. The PBOC's Loan Prime Rate (LPR): • Its an interest rate benchmark used in China, set by the People's Bank of China each month. • The LPR serves as a reference rate for banks when they determine the interest rates for (primarily new) loans issued to their customers. • Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. • Its calculated based on the interest rates that a panel of 18 selected commercial banks in China submit daily to the PBOC. • The panel consists of both domestic and foreign banks, with different weights assigned to each bank's contributions based on their size and importance in the Chinese financial system. The LPR is based on the average rates submitted by these panel banks, with the highest and lowest rates excluded to reduce volatility and manipulation. The remaining rates are then ranked, and the median rate becomes the LPR.
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