MNI BRIEF: China’s Sept Loan Prime Rate Unchanged

MNI (BEIJING ) - China's Loan Prime Rate remained unchanged on Friday according to a People's Bank of China statement, in line with market expectation and as the central bank held its key 7-day reverse repo rate stable.

The Loan Prime Rate was held at 3.35% for the one-year maturity and 3.85% for the over five-year tenor. Both rates unexpectedly fell last month by 10 basis points after the central bank lowered the 7-day reverse repo rate by the same level.

However, as recent data has revealed significant economic challenges ahead, there are increasing expectations of a rate and reserve requirement ratio cut later this year supported by the Federal Reserve’s recent move lower. (See MNI PBOC WATCH: Aug LPR To Hold, More Easing Eyed On Fed Cut）