(Finance) – The People’s Bank of China confirmed the 1-year and 5-year loan prime rate (LPR) financing rates at 3.45% and 4.20% respectively. The move by the Chinese central bank was expected by analysts.
LPR rates are the reference rates of Chinese banks for determining loan rates and mortgage repayments.
Last week the central institute kept 1-year rates unchanged at 2.5%. A move that surprised the markets, which had bet on a cut to 2.4%.
China’s MLF rates are the interest rates applied to loans that the People’s Bank of China provides to banks for a period of 6 months to a year.
On that occasion, the central bank also announced that it had injected 995 billion yuan into the Chinese financial system, compared to MLF loans worth 779 billion yuan expected to expire this month.