It's a sparse data calendar for the session here today.
Chinese prime rates will be set by the PBoC today. LPRs are no longer as important as they once were. The People's Bank of China (PBOC) shifted its primary monetary policy tool to the seven-day reverse repurchase agreement (reverse repo) rate. This transition began in mid-2024. This move aligns China's monetary policy framework more closely with global standards, such as those of the U.S. Federal Reserve and the European Central Bank, which typically rely on a single short-term policy rate to guide market expectations and liquidity.
Most lending in China is tied to the one-year LPR, while the five-year rate guides mortgage pricing.
- 1 year at 3%
- and 5 year is at 3.5%
Both rates were last trimmed by 10 basis points in May.
