⁍ The one-year loan prime rate (LPR) was kept unchanged at 3.85%.
⁍ The five-year LPR remained at 4.65% – as widely expected by the market.
⁍ Most new and outstanding loans are based on the LPR.
– The People’s Bank of China kept its benchmark lending rate for corporate and household loans steady for the sixth straight month at its October fixing on Tuesday, encouraged by an extended recovery in the world’s second-largest economy from the coronavirus shock. The one-year loan prime rate was kept unchanged at 3.85%, while the five-year LPR remained at 4.65%—as widely expected by the market, reports Reuters. Most new and outstanding loans are based on the LPR, while the five-year rate influences the pricing of mortgages. Twenty-five out of 28 traders and analysts, or nearly 90%, in a snap Reuters poll had predicted no change to either the one-year or the five-year LPR. The rate decision came after the People’s Bank of China kept borrowing costs on the medium-term lending facility (MLF) unchanged for the sixth month in a row last week.
Source: https://www.reuters.com/article/china-economy-lpr/china-keeps-lending-benchmark-lpr-steady-for-6th-straight-month-as-expected-idUSAZN00HNFS