The People’s Bank of China (PBOC) announced on Monday that it kept the one-year loan prime rate (LPR) unchanged at 4.15% this month.
Meanwhile, the five-year LPR was also left unchanged at 4.80% in January. The decision was on the expected lines.
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.
FX Implications
The AUD/USD pair paid little heed to the PBOC MLF rate cut, as it clung onto minor gains near 0.6880 region.
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