Coming up soon:
PBOC is expected to set the USD/CNY reference rate at 6.8196 – Reuters estimate
The People's Bank of China will also announce its 1year Medium Term Lending Facility (MLF) rate. Market consensus is at 2.75% from what I have seen around the place.
The MLF rate sets the scene for the monthly Loan Prime Rate (LPR) setting on the 20th.
The MLF rate was unchanged in January, as were the LPRs:
- 3.65% for the one year
- 4.30% for the five year
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The MLF rate is a benchmark interest rate that banks in China can use to borrow funds from the central bank for a period of 6 months to 1 year. The rate is typically announced on the 15th of each month.
