People's Bank of China policy rate setting, no change. As expected.

Current LPRs

  • 3.55% for the one year
    • most new and outstanding loans in China are based on the one-year LPR
  • 4.20% for the five year
    • most home mortgage rates are based on the five-year


PBOC's Loan Prime Rate (LPR)

  • It is an interest rate benchmark used in China, set by the People's Bank of China each month.
  • The LPR serves as a reference rate for banks when they determine the interest rates for (primarily new) loans issued to their customers.
  • Its calculated based on the interest rates that a panel of 18 selected commercial banks in China submit daily to the PBOC.
    • The panel consists of both domestic and foreign banks, with different weights assigned to each bank's contributions based on their size and importance in the Chinese financial system.
    • The LPR is based on the average rates submitted by these panel banks, with the highest and lowest rates excluded to reduce volatility and manipulation. The remaining rates are then ranked, and the median rate becomes the LPR.
PBOC Governor Yi Gang:08 May 2022

PBOC Governor Yi Gang