China maintains steady loan prime rate at 3.45%

20 Nov '23

1 min read

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China's one-year loan prime rate (LPR) remained constant at 3.45 per cent, matching the rate from the previous month.
The country's over-five-year LPR, crucial for mortgage rates, also stayed unchanged at 4.2 per cent.
The People's Bank of China injected 1.45 trillion yuan into the market, using the one-year MLF at a 2.5 per cent interest rate.

China's one-year loan prime rate (LPR) remains steady at 3.45 per cent, mirroring the rate from the previous month, according to a recent update from the National Interbank Funding Center. Similarly, the over-five-year LPR, a key reference point for mortgage rates in China, also held its ground, staying at 4.2 per cent.

Adding to these developments, the People's Bank of China, on November 15, injected a substantial 1.45 trillion yuan (approximately $202 billion dollars) into the market. This infusion was carried out through the one-year medium-term lending facility (MLF) at an interest rate of 2.5 per cent, aligning with the rates of previous operations, according to Chinese media reports.

In the previous month, the one-year LPR experienced a slight reduction of 10 basis points, bringing it to 3.45 per cent. However, the over-five-year rate remained constant at 4.2 per cent.

Fibre2Fashion News Desk (DP)

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