The People’s Bank of China (PBOC) is expected to keep the loan prime rate (LPR) steady, in order to help solidify reductions in corporate loan rates, the Financial News reported on Thursday.
The Chinese central bank left the LPR unadjusted at 3.85% in January while holding the five-year LPR steady at 4.65%.
“China’s corporate loan rates are likely to be kept low due to low inflation risks and stable macro policies.”
“The PBOC seems content with the current interest rate levels while leaving the January MLF rate unchanged, while abundant credit and demand should support recovery.”
USD/CNY was last seen trading modestly flat at 6.4619, bouncing off daily lows of 6.4567.