As reported by the National Interbank Funding Center today, China’s one-year loan prime rate retains is unchanged 3.45%. Similarly, the over-five-year LPR, a critical determinant of mortgage rates, is also steady at 4.2%.
The LPR, derived from the quotations by various banks with adjustments based on the open-market operation rates, serves as a pivotal indicator for loan pricing. This stability comes in the wake of PBoC’s substantial liquidity injection of CNY 1.45 into the market through the medium-term lending facility last week, maintaining an interest rate of 2.5%.
USD/CNH extends the decline from 7.3679 to as low as 7.1696 so far. Technically, near term outlook will now stay bearish as long as 7.2684 resistance holds, next target is 7.1154 cluster support (38.2% retracement of 6.6971 to 7.3679 at 7.1117). Reaction from there will reveal whether USD/CNH is already reversing whole up trend form 6.6971 to 7.3679.
. Reaction from there will reveal whether USD/CNH is already reversing whole up trend form 6.6971 to 7.3679.){kind=link}