PBOC likely to keep LPR unchanged this month – China Press

The People's Bank of China (PBOC) “is likely to keep the benchmark Loan Prime Rate (LPR) unchanged next Monday, after it skipped moving the anchored rate of the medium-term lending facility this week,” the Shanghai Securities Journal reported, citing analysts.

Additional quotes

"Also, policymakers are observing stimulus effects after making the largest ever 15 bps cut to the five-year LPR last month."

"The room for MLF rate cut will be limited in the future amid the rapid tightening of monetary policy by the Federal Reserve, and the PBOC may resort to lowering LPR to stimulate loan demand in the next stage."

Market reaction

USD/CNY was last seen trading down 0.21% on the day at 6.6981, pressured by a broadly weaker US dollar, in the face of the expected 75 bps Fed rate hike.