{"id":158021,"date":"2019-10-21T07:10:09","date_gmt":"2019-10-21T11:10:09","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=158021"},"modified":"2019-10-21T06:52:47","modified_gmt":"2019-10-21T10:52:47","slug":"china-maintains-lpr-at-4-20-and-5-yr-rate-at-4-85","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/china-maintains-lpr-at-4-20-and-5-yr-rate-at-4-85\/","title":{"rendered":"China maintains LPR at 4.20% and 5-yr rate at 4.85%"},"content":{"rendered":"
October 21, 2019<\/div>
\r\n<\/div><\/div>

By CentralBankNews.info<\/u><\/a><\/p>\n

\u00a0 \u00a0 China’s central bank left its new benchmark interest rate, the Loan Prime Rate (LPR), steady at 4.20 percent from September and the 5-year rate unchanged at 4.85 percent.<\/span><\/p>\n

\u00a0 \u00a0\u00a0 In August the People’s Bank of China (PBOC) reformed its method for setting LPR to improve the transmission of its monetary policy and lower the cost of financing, making LPR the pricing benchmark for all types of loans by commercial lenders instead of its lending rate.<\/span><\/p>\n

\u00a0 \u00a0\u00a0<\/span>LPR, which is linked to PBOC’s medium-term lending facility (MLF), is the average of prices submitted by 18 banks, and currently comprises two varieties, a 1 year and a 5 year.\u00a0<\/span><\/span><\/div>\n
<\/div>\n
\u00a0 \u00a0\u00a0 LPR is published on the 20th of each month, and if this falls on a\u00a0weekend or holiday, LPR is published the\u00a0following day.<\/span><\/span><\/div>\n
\u00a0 \u00a0 \u00a0On Aug. 20 LPR was published for the\u00a0first time since the reform and set at 4.25 percent, 6 basis points below the 4.31\u00a0percent it had been since it was\u00a0first introduced in\u00a0October 2013, and 10 points below the lending rate of 4.35 percent. The 5-year LPR was set at 4.85 percent.<\/span><\/span><\/div>\n
<\/div>\n
\u00a0 \u00a0 On Sept. 19 LPR was published for the second time at 4.20 percent for a decline of 5 basis points.<\/span><\/span><\/div>\n
\u00a0 \u00a0\u00a0Earlier today Yi Gang, PBOC governor, said in Washington DC that China\u00a0would continue to pursue a prudent\u00a0monetary policy and recent policy measures, such as three cuts to the reserve requirements for banks and the market-based reform on interest rates, had achieved desired results.<\/span><\/span><\/div>\n
<\/div>\n
\u00a0 \u00a0 \u00a0This\u00a0includes stable growth of money supply and\u00a0credit and low market\u00a0interest rates, and the transmission mechanism for monetary policy will be improved further to reduce firms’ funding cost and\u00a0promote high-quality economic growth.<\/span><\/span><\/div>\n
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\u00a0 \u00a0 www.CentralBankNews.info<\/a><\/span><\/span><\/div>\n
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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By CentralBankNews.info \u00a0 \u00a0 China’s central bank left its new benchmark interest rate, the Loan Prime Rate (LPR), steady at 4.20 percent from September and the 5-year rate unchanged at 4.85 percent. \u00a0 \u00a0\u00a0 In August the People’s Bank of China (PBOC) reformed its method for setting LPR to improve the transmission of its monetary […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-158021","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=158021"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158021\/revisions"}],"predecessor-version":[{"id":158032,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/158021\/revisions\/158032"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=158021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=158021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=158021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}