The People’s Bank of China (PBOC) is out with the latest statement, announcing that it has maintained the one-year loan prime rate (LPR) at 3.85% for the 13th straight month at its May fixing.
Meanwhile, the five-year LPR was also left unchanged at 4.65% in May. The Chinese central bank’s decision met market expectations.
According to the latest Reuters poll, twenty-two traders and analysts, or 92% of all 24 participants predicted no change in either the one-year Loan Prime Rate (LPR) or the five-year tenor.
The AUD/USD pair is edging higher towards 0.7750 on the PBOC rate decision and mixed Australian jobs report, extending its recovery momentum. Meanwhile, USD/CNY trades better bid around 6.4365, at the press time.
About PBOC Rate decision
The PBoC Interest Rate Decision is announced by the People´s Bank of China. If the PBoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CNY. Likewise, if the PBoC has a dovish view on the Chinese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.