Business News Asia
The People’s Bank of China (PBOC) left the one-year key lending rate (LPR) at 3.7% and the five-year LPR at 4.45%.
China’s one-year LPR rate is a measure of private lending rates. The 5-year LPR rate is a measure of the direction of household interest rates. This includes interest rates on mortgage loans.
Earlier, on July 15, the People’s Bank of China (PBOC) left the one-year medium-term lending (MLF) rate, China’s key interest rate, unchanged at 2.85%, with the one-year MLF representing 100 billion yuan in lending rates to some financial institutions.
The Chinese central bank said the one-year stabilization of the money market rate is aimed at maintaining adequate and reasonable liquidity in the financial system.
Will there be further cuts in the bank’s reserve requirement ratio (RRR) and interest rates? The PBOC said liquidity in the Chinese system is sufficient and at a relatively high level.