The monthly Loan prime rate setting from China was today:
The LPR is a refernce rate for lending set by 18 banks
- its a base rate for new corporate loans
- its loosely pegged to the medium-term lending facility (MLF) rate
Earlier this week the PBOC reduced the rate on 14 day reverse repos by 5 bps. It walso added 630bn yuan of liquidity this week. Liquidity is expected to tighten next month unless there are further injections.