CH 5-y Loan Prime Rate
It's an important driver of commodity demand - lower interest rates decrease carrying costs. Reduced costs to store goods will spur companies to make investments in raw materials, leading to higher inventory levels;
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;
- CH 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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- CH 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 - ...
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 ...
Copper, gaps lower on the open, drops then recovers. Bob Iaccino Explains.
Gold prices are posting decent gains in early U.S. trading Tuesday, while silver prices are lower. The yellow metal is getting a lift due in part to China dropping key interest rates for mortgages in an effort to jumpstart its troubled housing/property sector. That could translate into better demand for metals, down the road, from the world’s second-largest economy. A weaker U.S. dollar index to start the U.S. trading week is also helping out the gold market bulls. April gold was last up $14.30 at $2,038.20. March silver was last ...
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 ...
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