PBOC leaves Loan Prime Rates unchanged in June

Source Fxstreet

The People’s Bank of China (PBOC), China's central bank, announced to leave its Loan Prime Rates (LPRs) unchanged on Friday. The one-year and five-year LPRs were at 3.00% and 3.50%, respectively

Market reaction

At the time of writing, the AUD/USD pair is trading 0.10% higher on the day to trade at 0.6488.

PBOC FAQs

The primary monetary policy objectives of the People's Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market.

The PBoC is owned by the state of the People's Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts.

Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi.

Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Who Moved 80,000 BTC? Bitcoin On-Chain Sleuth Drops Bombshell ExposéBitcoin On-chain Sleuth TruthLabs has dropped his theory on who moved the 80,000 BTC ($8.72 billion).
Author  Bitcoinist
Yesterday 01: 22
Bitcoin On-chain Sleuth TruthLabs has dropped his theory on who moved the 80,000 BTC ($8.72 billion).
placeholder
Gold Price Forecast: XAU/USD declines below $3,350 on hopes for trade dealsThe Gold price ( XAU/USD) trades in negative territory near $3,330 during the Asian trading hours on Tuesday, pressured by a firmer US Dollar (USD).
Author  FXStreet
Yesterday 02: 19
The Gold price ( XAU/USD) trades in negative territory near $3,330 during the Asian trading hours on Tuesday, pressured by a firmer US Dollar (USD).
placeholder
Citigroup Revs Up the Engine: Raises NVIDIA Target to $190, Eyes $4 Trillion MarketCitigroup has recently raised its price target for NVIDIA (NVIDIA.US) from its previous level to $190 per share, suggesting roughly 15% upside from Thursday’s closing price.
Author  TradingKey
Yesterday 06: 39
Citigroup has recently raised its price target for NVIDIA (NVIDIA.US) from its previous level to $190 per share, suggesting roughly 15% upside from Thursday’s closing price.
placeholder
Dogecoin Resistance Walls Ahead: Analyst Flags 3 Key LevelsAn analyst has pointed out three key resistance levels for Dogecoin that could be to keep an eye on, based on on-chain data. Dogecoin URPD Shows These Price Levels Stand Out In a new post on X,
Author  NewsBTC
Yesterday 06: 36
An analyst has pointed out three key resistance levels for Dogecoin that could be to keep an eye on, based on on-chain data. Dogecoin URPD Shows These Price Levels Stand Out In a new post on X,
placeholder
Solana Price Forecast: SOL eyes breakout as network activity hits record high, ETF chances improveSolana (SOL) ticks marginally higher on Tuesday as the selling pressure persists following the near 2% drop on Monday.
Author  FXStreet
Yesterday 08: 13
Solana (SOL) ticks marginally higher on Tuesday as the selling pressure persists following the near 2% drop on Monday.
goTop
quote