More on China leaving lending rate unchanged

The monthly Loan prime rate setting from China was today:

• China monthly loan prime rate fixing: 1 year LPR set at 4.15% (prior 4.15%)

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.