For April the 1 and 5 year remain unchanged

  • 1 year at 3.70%
  • 5 year at 4.60%
  • In March the one-year loan prime rate was held at 3.70% while the five-year remained at 4.60%

more to come


Background to the setting today:

Last week the PBOC rolled over a medium-term lending facility (MLF) at an unchanged rate.

This lowered the expectation for any cut to LPRs today. For example:

But, Reuters polling showed otherwise, earlier post in this is here

  • 11, or 39% of all respondents, predicted a marginal cut of 5 basis points (bps) to both the one-year loan prime rate (LPR) and the five-year rate
  • Another six participants also expect a reduction to either rates within a range of 5 to 10 bps
  • The remaining 11 respondents expected both rates to remain unchanged this month.

The Bank, though, has made a small cut to the reserve requirement ratio (RRR):