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China’s Key Rates Unchanged for 16th Straight Month in Line with Expectations

August 20, 2021 by Forex Winner Leave a Comment

China’s Key Rates Unchanged for 16th Straight Month in Line with Expectations

Source: Trading Economics

China kept its key policy rates unchanged for the 16th straight month, keeping in line with market consensus.

  • The People’s Bank of China maintained the one-year loan prime rate at 3.85%. It was last lowered from 4.05% in April 2020.
  • The one-year loan prime rates cover most of the new and outstanding loans in China.
  • The five-year loan prime rate was kept unchanged at 4.65%. This was last lowered from 4.75% in April 2020.
  • The five-year loan price rates are mainly used for mortgage pricing.
  • The PBOC also infused billions of yuan into China’s financial system via medium-term loans earlier this week.

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