The Loan Prime Rate settings from the PBOC are the focus of the calendar for the session ahead. This’ll happen around 0115 GMT, which is 9.15 pm Eastern Time Sunday US time.
Last week the PBOC’s Medium-term Lending Facility (MLF) rate was left unchanged:
An unchanged MLF rate is strongly suggestive of no change to come for LPRs today.
The PBOC’s Loan Prime Rate (LPR):
- Its an interest rate benchmark used in China, set by the People’s Bank of China each month.
- The LPR serves as a reference rate for banks when they determine the interest rates for (primarily new) loans issued to their customers.
- Its calculated based on the interest rates that a panel of 18 selected commercial banks in China submit daily to the PBOC.
- The panel consists of both domestic and foreign banks, with different weights assigned to each bank’s contributions based on their size and importance in the Chinese financial system.
- The LPR is based on the average rates submitted by these panel banks, with the highest and lowest rates excluded to reduce volatility and manipulation. The remaining rates are then ranked, and the median rate becomes the LPR.
Current LPR rates are:
- 3.45% for the one year
- 4.20% for the five year
-
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. -
I’ve
noted data for New Zealand and Australia with text as the similarity
of the little flags can sometimes be confusing.