China’s One Year Loan Prime Rate Drops to 3.85%

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China’s loan prime rate (LPR) has just seen a decline following recent cuts to rates for one of the Chinese central bank’s key open market instruments.

On 20 April the People’s Bank of China (PBOC) announced that the one-year LPR is 3.85% and the five-year LPR is 4.65%.

The one-year LPR fell by 20 basis points compared to the March reading of 4.05%, while the five-year LPR fell by 10 basis from 4.75%.

The decline follows a drop in rates for the Chinese central bank’s one-year medium-term lending facility (MLF) amidst efforts by Beijing to improve liquidity to stymie the economic fallout of the COVID-19 pandemic.

On 15 April PBOC in­jected 100 bil­lion yuan via one-year MLF fa­cil­i­ties at a rate of 2.95%, for a re­duc­tion of 20 ba­sis points com­pared to the last MLF sale at 3.15%. 

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Chi­nese Cen­tral Bank Cuts Rates for Medium-term Lend­ing Fa­cil­i­ties 20 Ba­sis Points, Launches Tar­geted RRR Re­duc­tion

State Me­dia Flags Sev­eral More Re­quired Re­serve Cuts from PBOC in 2020

Loan Prime Rate (贷款市场报价利率)

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