Settlement convenience (MLF) at the central bank of China (MLF)After the interest rate was 15 basis points, the commercial bank accidentally reduced the one -year loan market quotation interest rate (LPR) 10 basis points on Monday (August 21), and the five -year remained unchanged.
The announcement issued by the People's Bank of China on the official website shows that the one -year LPR was reported to 3.45%, a 10 -basis point decreased from the previous month.The median forecast of economists participating in Bloomberg survey was reduced by 15 basis points in two periods.
Bloomberg quoted Xing Zhaopeng, a senior Chinese strategist at the Australian and New Bank, said: "This result is surprising ... This shows that the bank is not ready, and we think that the interest rate reduction will continue for a few months in the future."
The Dow Jones News Agency reports that the above adjustment is obviously not as good as expected, and it may be related to the continuous depreciation of the recent RMB exchange rate.
China's economic data in July is generally disappointing. In the second quarter monetary policy implementation report released by the People's Bank of China last week, it has mentioned that "increased macro policy regulation."LPR generally follows MLF adjustment. This time LPR accidentally cuts interest rates or shows, under pressure to bank interest deviations, the space for further benefit the real economy may be limited.
In August 2019, the People's Bank of China announced the reform and improvement of the LPR formation mechanism and required a new loan to be linked to it. The interest rate was formed by the 18 quotes on the basis of MLF interest rate.
