The China Loan Prime Rate setting was unchanged with the 1-year 3.85% and 5 year 4.65%.
This was expected.
Meanwhile, China’s economy grew more than expected last year, even as the rest of the world was upended by the coronavirus pandemic.
The world’s second-largest economy expanded 2.3% in 2020 compared to a year earlier, according to government statistics released earlier this week.
However, this was China’s slowest annual growth rate in decades. It was the worst rate of growth since 1976 when GDP shrunk 1.6% during a time of social and economic tumult.
AUD/USD is firm in Asia, higher by 0.2% and taking on the bear’s commitments at the 0.77 figure.
Description of the PBoC interest 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.