Chinas first LPR this year is as expected

The People's Bank of China announced the first loan market quotation interest rate (LPR) this year, which remains the same as market expectations.

The People's Bank of China announced the LPR quotation on Monday (January 22). The first -year variety was reported 3.45%, and 4.20%of the five -year varieties were the same as the previous period.This is also the fifth consecutive month of LPR.

Reuters' surveys on 27 market observations last week showed that except for one person, all participants predicted that LPR would remain unchanged.

LPR is formed on the basis of the interest rate of medium -term borrowing (MLF). Although the market has expected interest rate cuts, the central bank has maintained the bid interest rate in the MLF sequel this month.

Most of China's new loans and unpaid loans are based on one -year LPR, while the five -year interest rate affects the pricing of mortgage loans.