The PBOC will be setting rates for one- and five-year Loan Prime Rates (LPR) on Tuesday around 0115 GMT.

After the rate on the MLF issued last week by the Bank was left unchanged

expectations are for no change to LPRs.

Currently at:

  • 1Y 3.65%
  • 5Y 4.30%

Credit costs in China remain firm, which is one reason banks are holding off on cutting rates. On the other hand, government policy is to support the property sector, and given that mortgage raters in China are based around the 5-year LPR ther is a chance of a small cut to this.

5 year lpr pboc 19 December 2022

Graph of the 1Y via