MNI BRIEF: China July Loan Prime Rate Kept Unchanged

China’s reference lending rate remained unchanged on Wednesday, according to a statement on the People's Bank of China website, which was in line with market expectations after the central bank maintained a key policy rate last week.

The Loan Prime Rate, based on the rate of PBOC’s Medium-term Lending Facility and quotes submitted by 18 banks, remains at 3.70% for the one-year maturity and 4.45% for five years. The PBOC left the rate on its 1-year MLF unchanged at 2.85% on July 15 when it rolled over the CNY100 billion maturing under the facility, (See: MNI STATE OF PLAY: China LPR Seen Steady As Deposit Rates Key).

The PBOC announced the largest ever cut to five-year and higher tenors of LPR in May, reducing it by 15 bps to boost mortgage lending and prop up a sluggish housing market. It cut the 1- year LPR in January and December by a total 15 bps after keeping it unchanged for 19 months.