PBOC held 1 and 5 year rates steady today for the 15th month in a row
The Loan Prime Rates (LPR) are a benchmark rate for loans to business and households in China. There had been some (not consensus) expectations for a slight decline in the 1-year rate:
Following this cut the most recent medium-term lending facility (MLF) was conducted at a steady rate (unchanged at 2.2% for these one-year loans to banks). Changes in the MLF rate often precede LPR change.
The LPR is a lending reference rate set monthly by 18 banks
- at a premium over the MLF rate
For more on PBOC tools, this is an old post with some info: