The PBOC retains the 1-year Loan Prime Rate at 3.70 percent, while the AUD/USD remains modestly bid.

During Monday's announcement, the People's Bank of China (PBOC) held its major monetary policy rates, namely the Loan Prime Rates (LPRs), unchanged.

June 20, 2022 - 12:57 PM 270 views

5The PBOC retains the 1-year Loan Prime Rate at 3.70 percent, while the AUD/USD remains modestly bid.

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© 5The PBOC retains the 1-year Loan Prime Rate at 3.70 percent, while the AUD/USD remains modestly bid.

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During Monday's announcement, the People's Bank of China (PBOC) held its major monetary policy rates, namely the Loan Prime Rates (LPRs), unchanged.

The Chinese central bank has maintained the 1-year and 5-year LPRs at 4.45 percent and 3.7 percent, respectively, in line with market expectations.

The Market Reaction

The event received no significant reaction because markets had already anticipated no change in the PBOC's monetary policy. Even so, by press time, the AUD/USD exchange rate was hovering around 0.6950.

Concerning the PBOC's Interest Rate Decision

The People's Bank of China announces its interest rate decision. It is beneficial, or bullish, for the CNY if the PBoC is hawkish about the economy's inflationary prospects and raises interest rates. Similarly, if the PBoC has a dovish outlook on the Chinese economy and maintains or lowers the interest rate, it is negative, or bearish.

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