China has launched a new benchmark lending rate, or the “loan prime rate”, that guides commercial banks in setting interest rates when lending to their best customers, the country’s central bank said on Friday.
The new rate would help China’s benchmark interest rates market move towards a system led by market forces, the central bank said in a statement.
The loan prime rate, which currently only has a one-year tenor, was set by nine commercial banks on Friday including China’s four biggest banks. The rate will be announced on every working day on the Shanghai Interbank Offered Rate (SHIBOR) website.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at firstname.lastname@example.org. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.