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- PBOC keeps one-year loan prime rate steady at 3.85%
PBOC keeps one-year loan prime rate steady at 3.85%
The People’s Bank of China (PBOC) is out with the latest statement, announcing that it has maintained the one-year loan prime rate (LPR) at 3.85% for the 18th month in a row at its October fixing.
Meanwhile, the five-year LPR was also left unchanged at 4.65% in October. The Chinese central bank’s decision met market expectations.
According to the latest Reuters poll, China was seen keeping the one-year LPR unchanged at the October decision.
The AUD/USD pair ticked higher on the PBOC rate decision, looking to take out the 0.75 barrier. The spot is up 0.21% on the day.
Meanwhile, USD/CNY slumps 0.72% on a daily basis, currently trading at 6.3822, fresh four-month lows.
About PBOC Rate decision
The PBOC Interest Rate Decision is announced by the People´s Bank of China. If the PBoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CNY. Likewise, if the PBoC has a dovish view on the Chinese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.
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