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Wednesday, May 20, 2020, 18:13
China leaves loan prime rates unchanged
By Reuters
Wednesday, May 20, 2020, 18:13 By Reuters

SHANGHAI - China held its benchmark lending rate steady on Wednesday, mirroring the central bank’s decision last week to keep borrowing costs on medium-term funding for financial institutions unchanged.

The one-year loan prime rate (LPR) remained at 3.85% from last month’s fixing, while the five-year LPR was also steady at 4.65% from previously

The one-year loan prime rate (LPR) remained at 3.85 percent from last month’s fixing, while the five-year LPR was also steady at 4.65 percent from previously.

Markets usually take the People’s Bank of China’s (PBOC) stance on its medium-term lending facility (MLF) rate - which serves as guide for the LPR - as an indicator for any adjustment to the lending benchmark.

ALSO READ: 'More flexible, powerful' monetary policy needed

The PBOC surprised markets last Friday by keeping the interest rate on MLF loans steady, even as authorities have stepped up the pace of monetary easing recently to combat the worst economic slowdown in decades.

The LPR is a lending reference rate set monthly by 18 banks.

READ MORE: PBOC pledges stronger counter-cyclical measures


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