Key Takeaways:
- Ninth straight month of unchanged one-year and five-year LPRs.
- Authorities favor targeted easing via structural facilities and RRR tweaks.
- Measures support credit, shield banksโ NIMs, without lowering economy-wide borrowing costs.
China left benchmark lending rates unchanged for a ninth consecutive month in February, as reported by Reuters, keeping both the one-year and five-year Loan Prime Rates (LPRs) steady. The pause reflects the Peopleโs Bank of Chinaโs calibrated approach.
Rather than broad LPR cuts, authorities appear to favor targeted easing via structural facilities and reserve requirement ratio (RRR) adjustments to support credit while protecting banksโ net interest margins, based on analysis from S&P Global. This channels aid to specific sectors without materially lowering economy-wide borrowing costs.
The one-year LPR stands at 3.00% and the five-year LPR at 3.50%, levels held unchanged in January for an eighth month, according to InvestingLive. February maintained that stance, extending the sequence of steady settings.
For households, an unchanged five-year LPR, the mortgage benchmark, limits immediate relief for new mortgages and refinancing. For corporates, a steady one-year LPR keeps loan pricing stable but does not loosen credit conditions by itself.
Context from sell-side research points to why policymakers are patient. โRecent adjustments to targeted tools have lowered the need for large LPR moves for now,โ said Bank of America Securities.
Views differ on timing, but a cautious, data-led bias prevails. โWe see modest policy-rate reductions ahead, with LPR cuts more likely to follow later, potentially in Q2,โ said Nomura.
Disclaimer: CoinLineup.com provides cryptocurrency and financial market information for educational and informational purposes only. The content on this site does not constitute financial, investment, or trading advice. Cryptocurrency and stock markets involve significant risk, and past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
About the author
Loan Prime Rate holds ninth month as PBOC stays cautious
China kept one- and five-year Loan Prime Rate (LPR) unchanged for a ninth month in Feb as analysts cite RRR easing to protect bank margins and support the yuan.
U.S. Housing Market cools as sellers outnumber buyers 44%
Redfin data shows sellers outnumber buyers by 44% as mortgage-rate sensitivity, affordability and lock-in lift inventory; NAR and SF Fed cite normalization.
U.S. Tariffs shift as Supreme Court curbs IEEPA
Learning Resources, Inc. v. Trump, IEEPA tariffs, Section 122 of the Trade Act of 1974: ruling curbs IEEPA powers; MOFCOM urges rollback; analysts flag refunds.
Switzerland-U.S. Trade Deal advances as 15% tariff outlined
Switzerland U.S. trade deal: how a Supreme Court tariff ruling affects enforceability as duties fall to 15% from 39%, impacting MEM exports and investment.
Crypto.com secures conditional OCC OK for trust bank
OCC conditional approval lets Crypto.com form Foris DAX National Trust Bank; AML/KYC, CRA and disclosure rules apply, shaping its qualified custodian role.
IoTeX (IOTX) faces Upbit caution tag after key exploit
Upbit flagged IoTeX after a key exploit; deposits paused pending DAXA review. Upbit caution list, IoTeX private key exploit, IOTX deposit suspension per notice.
Related
U.S. Housing Market cools as sellers outnumber buyers 44%
Redfin data shows sellers outnumber buyers by 44% as mortgage-rate sensitivity, affordability and lock-in lift inventory; NAR and SF Fed cite normalization.
U.S. Tariffs shift as Supreme Court curbs IEEPA
Learning Resources, Inc. v. Trump, IEEPA tariffs, Section 122 of the Trade Act of 1974: ruling curbs IEEPA powers; MOFCOM urges rollback; analysts flag refunds.
Switzerland-U.S. Trade Deal advances as 15% tariff outlined
Switzerland U.S. trade deal: how a Supreme Court tariff ruling affects enforceability as duties fall to 15% from 39%, impacting MEM exports and investment.
Crypto.com secures conditional OCC OK for trust bank
OCC conditional approval lets Crypto.com form Foris DAX National Trust Bank; AML/KYC, CRA and disclosure rules apply, shaping its qualified custodian role.
IoTeX (IOTX) faces Upbit caution tag after key exploit
Upbit flagged IoTeX after a key exploit; deposits paused pending DAXA review. Upbit caution list, IoTeX private key exploit, IOTX deposit suspension per notice.
US Dollar Index eases as tariff risks dent growth outlook
Tariff-policy uncertainty is pressuring the US Dollar Index (DXY) via growth, inflation, and risk sentiment, analysts cite, as markets weigh safe-haven flows.
