중국 - 금리

The People's Bank of China decided on December 28th 2019 to start using the key loan prime rate (LPR) as a new benchmark for pricing outstanding floating-rate loans. From January 1st 2020, financial institutions will not be allowed to sign floating-rate loan contracts that are priced in the old rates but should use the LPR instead. The move is expected to lower borrowing costs and is seen as another measure toward interest-rate liberalisation. The one-year LPR is at 4.15% and the 5-year LPR, generally used for new mortgage loans, at 4.8%. The central bank last cut the two rates by 5bps each last month, aiming to reduce lending costs and boost a slowing economy. Since the one-year LPR became the official key rate in August 2019, it was already cut 3 times.

The People's Bank of China decided on December 28th 2019 to start using the key loan prime rate (LPR) as a new benchmark for pricing outstanding floating-rate loans. From January 1st 2020, financial institutions will not be allowed to sign floating-rate loan contracts that are priced in the old rates but should use the LPR instead. The move is expected to lower borrowing costs and is seen as another measure toward interest-rate liberalisation. The one-year LPR is at 4.15% and the 5-year LPR, generally used for new mortgage loans, at 4.8%. The central bank last cut the two rates by 5bps each last month, aiming to reduce lending costs and boost a slowing economy. Since the one-year LPR became the official key rate in August 2019, it was already cut 3 times.

The People's Bank of China left its benchmark 1-year Loan Prime Rate (LPR) unchanged at 4.15 percent on December 20th 2019. The 5-year LPR, generally used for new mortgage loans, was also left on hold at 4.8 percent. The central bank last cut the two rates by 5bps each last month, aiming to reduce lending costs and boost a slowing economy. Since the one-year LPR became the official key rate in August 2019, it was already cut 3 times. The central bank says he pursues its monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level but markets expect the PBoC to adopt an easier monetary policy stance in 2020 amid a slowing economy. Yet, the central bank has conducted two reverse repurchase agreements this month; the second biggest so far in 2019 was made the day before, with a CNY 280 billion pump.

The PBoC lowered its one-year Loan Prime Rate by 5bps to 4.15 percent on November 20th 2019, aiming to reduce lending costs and boost a slowing economy. It is the third rate cut since the one-year LPR became the official key rate in August and follows other recent declines in borrowing costs, despite pressures on inflation from rising pork prices from an outbreak of African Swine Fever. The five-year Loan Prime Rate, generally used for new mortgage loans was also slashed by 5bps to 4.8 percent. Earlier on Monday, the PBoC trimmed its seven-day reverse repurchase rate to 2.5 percent from 2.55 percent, the first cut in over 4 years and two weeks ago the medium-term lending facility was lowered to 3.25 percent from 3.3 percent.

The People's Bank of China (PBOC) lowered the rate on one-year MLF loans (medium-term lending facility) by 5 basis points to 3.25 percent on November 5th 2019. It is the first reduction since early 2016, as policymakers seek to support a slowing economy hit by weaker demand at home and abroad. The bank also injected 400 billion yuan (US$56.94 billion) into the financial system replacing 403.5 billion yuan of loans that mature Tuesday. The MLF rate acts as a guide for the PBOC’s new lending benchmark, the Loan Prime Rate (LPR).

China set the one-year Loan Prime Rate (LPR) at 4.20 percent in October, steady from the previous monthly fixing. Meanwhile, the five-year LPR was fixed at 4.85 percent, also unchanged from September.