China’s central bank raises number of LPR quotation banks to 20

CHINA’S central bank on Friday (Jan 19) said it would add two commercial banks to the pool of banks that contribute to the loan prime rate (LPR), a benchmark lending rate.

The adjustments will be implemented from Jan 22, it said in a statement.

The increase will bring the number of banks contributing to the rate to 20 from the previous 18.

The LPR normally charged to banks’ best clients is calculated each month after the designated commercial banks submit proposed rates to the People’s Bank of China (PBOC).

China is widely expected to leave lending benchmark rates unchanged at a monthly fixing on Monday, a Reuters survey showed, after the central bank surprised markets by holding a key policy rate unchanged earlier this week. REUTERS