1-year rate stays at 3.1%, 5-year rate at 3.6%,
People’s Bank of China,
, ‘[Seoul Economy]’,
,
, ‘China has kept its Loan Prime Rate (LPR), which effectively serves as a benchmark interest rate, unchanged for the third consecutive month.’,
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, ‘The People’s Bank of China, the country’s central bank, announced on the 20th that it will maintain the one-year LPR at 3.1% and the five-year LPR at 3.6%. The one-year LPR is used as a standard for general loans, while the five-year LPR is for mortgage loans.’,
,
, ‘The LPR is determined each month when 20 major commercial banks submit interest rates to the interbank funding center, taking into account their own funding costs and risk premiums. The People’s Bank of China then aggregates and announces these rates. Commercial banks use the LPR as a de facto benchmark interest rate.’,
,
, ‘Since October of last year, China has maintained the one-year LPR at 3.1%, down from 3.35%, and the five-year LPR at 3.6%, down from 3.85%.’,
,
, ‘In December of last year, the Chinese authorities shifted their monetary policy stance from the “prudent monetary policy” that had been in place since 2011 to a “reasonably accommodative monetary policy.” Ahead of the country’s largest holiday, Lunar New Year (Spring Festival), there is speculation that the reserve requirement ratio might be lowered to ensure liquidity supply. The market anticipates that the base rate might be cut in the first quarter in response to intensified tariff pressures from the U.S. following the inauguration of President Donald Trump.’,
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