China’s central bank to announce Loan Prime Rate, expected steady

BEIJING – The People’s Bank of China (PBoC) is set to announce its Loan Prime Rate (LPR) today, a critical benchmark for bank lending and mortgage rates in the country. The announcement is scheduled for 01:15 GMT on November 20, which corresponds to 21:15 ET today. Financial markets are anticipating that the one-year and five-year LPRs, currently at 3.45% and 4.20% respectively, will hold steady.

The LPR is a reference interest rate set monthly by the PBoC based on submissions from a panel of domestic and foreign commercial banks operating in China. This rate influences the cost of borrowing for businesses and consumers and plays a key role in the broader economic landscape. The panel’s submissions are weighted according to each bank’s importance in the financial system, with the highest and lowest figures excluded to determine the median rate.

Despite last week’s unchanged Medium-term Lending Facility (MLF) rate, which often serves as a precursor to the LPR decision, there is a unanimous market expectation that today’s LPR announcement will maintain the status quo. This anticipated decision comes amidst efforts by Chinese monetary authorities to balance economic growth with financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source link