Monitor the CH 5-y Loan Prime Rate to gauge China's monetary policy impact on Forex markets.
Short-term interest rates are a critical factor in determining currency value, as traders often examine other indicators mainly to forecast future rate changes. This rate serves as a benchmark lending rate set by the People's Bank of China to manage short-term interest rates as part of its monetary policy.
What it Measures
The interest rate charged by commercial banks on mortgage loans.
Usual Effect
When the 'Actual' figure exceeds the 'Forecast', it is considered favorable for the currency.
Source & Frequency
People's Bank of China (latest release) - http://www.pbc.gov.cn/english/index.html • This is typically released on a monthly schedule.
How Data is Derived
Based on a weighted average of lending rates from 18 commercial banks
Also Known As
LPR
Acronym
Loan Prime Rate (LPR)