The People's Bank of China is the focus today, with LPR settings. These are not as critical as they once were. In June 2024, Governor Pan Gongsheng announced a strategic shift, designating the 7-day reverse repurchase (repo) rate as the primary short-term policy rate.
However, most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The one-year LPR and the over-five-year LPR are currently at 3.10% and 3.60%, respectively.
Recent moves:
July 22, 2024: The one-year LPR was reduced by 10 basis points to 3.35%, and the over-five-year LPR was lowered by 10 basis points to 3.85%.
- In August and September 2024, the People's Bank of China (PBOC) maintained the Loan Prime Rates (LPR) at the levels set in July.
October 21, 2024: The one-year LPR was further reduced by 25 basis points to 3.10%, and the over-five-year LPR was decreased by 25 basis points to 3.60%.
November 20, 2024: Both the one-year LPR and the over-five-year LPR were maintained at 3.10% and 3.60%, respectively.
December 20, 2024: The PBOC kept both the one-year LPR and the over-five-year LPR unchanged.
This snapshot from the ForexLive economic data calendar,
access it here.
The times in the left-most column are GMT.
The numbers in the right-most column are the 'prior' (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.
This article was written by Eamonn Sheridan at
www.forexlive.com.
