The LPR was announced earlier, a reduction was expected but we ddidn't get it:

Bloomberg reported a response on the unchanged rate today:

  • shows China "may be trying to balance the shrinking margins of banks with support to the real economy" said Zhou Hao, a senior emerging-markets economist at Commerzbank AG. "The PBOC remains restrained on policy easing."
  • October's rate comes as China continues to offer credit support to the economy, including a surprising $28-billion injection of one-year cash into the financial system last week.
  • "It's not in line with market expectations," said Zhaopeng Xing, markets economist at ANZ Bank China. "The PBOC intends to reserve room for future headwinds."

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LPR is a market indicator of the price that lenders charge clients for new loans

  • is linked to the rate at which the central bank will lend financial institutions cash for a year
  • made up of submissions from a panel of 18 banks, though the PBOC also plays a role in setting the level.