FOREX TradingCharts.com

Financial News: China Retains Benchmark Lending Rates As Expected

China Retains Benchmark Lending Rates As Expected

05/20/2020 - 01:51:00 (RTTNews)

(RTTNews) - China left its benchmark lending rates unchanged, as widely expected, after easing last month, amid the economy struggling to recover from the impact of the coronavirus outbreak.

The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate at 4.65 percent.

The one-year and five-year loan prime rates were last reduced in April. The one-year loan prime rate was lowered by 20 basis points and five-year rate by 10 basis points in April.

The loan prime rate is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This new lending rate replaced the central bank's traditional benchmark lending rate in August 2019.

Last week, the People's Bank of China had retained its rate on one-year Medium-Term Lending Facility, or MLF, at 2.95 percent despite market expecting a reduction. The MLF tool was introduced in 2014.

The benchmark lending rates were kept unchanged on Wednesday despite deleting the description of a prudent monetary policy stance, which created a market consensus that it is going to ease aggressively, Iris Pang, an ING economist noted.

The economist expects the PBoC could ease during the Two Sessions when the government work report is approved. This should include an interest rate cut and a reserve requirement cut of 0.5 to 1.0 percentage point.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Czech Economic Sentiment Rebounds Modestly (02 hr(s), 51 min(s), 55 sec(s) ago)
(RTTNews) - The Czech Republic's economic sentiment improved slightly in May, after a historic ...Full Story»

Belgium Business Confidence Recovers Slightly In May (03 hr(s), 14 min(s), 55 sec(s) ago)
(RTTNews) - Belgium business confidence slightly recovered in May led by a modest improvement in s ...Full Story»

German Ifo Business Confidence Improves In May (04 hr(s), 42 min(s), 55 sec(s) ago)
(RTTNews) - Germany's business confidence improved in May driven by modest expectations of an ...Full Story»

Amended: German Ifo Business Confidence Improves More Than Expected (05 hr(s), 13 min(s), 55 sec(s) ago)
(RTTNews) - Corrects the first sentence in the third paragraph to reflect the fall in the current ...Full Story»

Spain Producer Prices Log Record Fall (05 hr(s), 20 min(s), 55 sec(s) ago)
(RTTNews) - Spain's producer prices declined at the fastest pace on record in May, driven by a ...Full Story»

Taiwan Industrial Production Output Growth Eases (05 hr(s), 59 min(s), 55 sec(s) ago)
(RTTNews) - Taiwan's industrial production growth eased notably in April, data from the Minist ...Full Story»

Hong Kong Exports Decline Slows In April (07 hr(s), 27 min(s), 55 sec(s) ago)
(RTTNews) - Hong Kong's merchandise exports decreased at a slower pace in April, as the demand ...Full Story»

German Ifo Business Confidence Improves More Than Expected (08 hr(s), 57 min(s), 55 sec(s) ago)
(RTTNews) - Germany's business confidence improved slightly more than expected in May, as Euro ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Czech Economic Sentiment Rebounds Modestly

05/25/2020 - 10:42 AM (RTTNews)
(RTTNews) - The Czech Republic's economic sentiment improved slightly in May, after a historic ...Full Story>>

Belgium Business Confidence Recovers Slightly In May

05/25/2020 - 10:19 AM (RTTNews)
(RTTNews) - Belgium business confidence slightly recovered in May led by a modest improvement in s ...Full Story>>

German Ifo Business Confidence Improves In May

05/25/2020 - 08:51 AM (RTTNews)
(RTTNews) - Germany's business confidence improved in May driven by modest expectations of an ...Full Story>>

Amended: German Ifo Business Confidence Improves More Than Expected

05/25/2020 - 08:20 AM (RTTNews)
(RTTNews) - Corrects the first sentence in the third paragraph to reflect the fall in the current ...Full Story>>

Spain Producer Prices Log Record Fall

05/25/2020 - 08:13 AM (RTTNews)
(RTTNews) - Spain's producer prices declined at the fastest pace on record in May, driven by a ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.