MNI BRIEF: Oct LPR Remains Unchanged

China's Loan Prime Rate held steady on Monday, in line with expectations while the central bank holds the easing pace amid uncertainties from the economic slowdown and escalating China-U.S. trade tensions. 

According to a statement on the website of People’s Bank of China, LPR remained unchanged at 3.0% for the one-year maturity and 3.5% for the five-year tenor and over. Both rates fell in May by 10bp after the PBOC lowered the 7-day reverse repo rate – its benchmark policy rate – 10bp to 1.4% on May 8, followed by a 50bp reduction to the reserve requirement ratio on May 15. (See MNI PBOC WATCH: Oct LPR To Hold, Trump-Xi Meeting In Focus)

Advisors and economists predicted more easing this quarter as the economy likely suffers stronger headwinds, while the chance of any long-term trade deal would be limited during the possible Trump-Xi meeting at the APEC summit in South Korea at the end of this month.