People’s Bank of China Monetary Policy Interest Rate Setting Date – What to Expect in Lending Rates – ForexLive | Jewelry Dukan

The PBOC will set policy rates for one- and five-year loans today.

  • at 01:15 GMT on Tuesday 20 September 2022

In August, the key lending rate for one-year loans was cut to 3.65% (from 3.70%). As a background:

  • Most new and outstanding loans in China are based on the one-year LPR
    the previous cut to 1 year was in January
    the 5 basis point cut is not as severe as the expected 10 basis point cut

Also last month, the policy rate for 5-year loans was cut to 4.30% (from 4.45%).

  • Most home mortgage rates are based on five years
    the 5-year-old was last cut in May
    The consensus expectation was a 10 basis point cut, a 15 basis point cut is more than most were expecting

Given that the MLF rate was stable last week, no change in LPRs is expected for today at today’s settings. Add to this the PBoC’s likely worries about the flagging yuan (CNY and CNH falling against the USD, almost everything!) and the bank will be reluctant to add even lower interest rates to the reasons for capital outflow. Nevertheless, we had a small cut yesterday:

EUR

EUR

The Euro (EUR) is the official currency of the European Union (EU) and 19 out of 27 member states at the time of writing. It is the world’s second most traded currency in foreign exchange markets after the US dollar. The euro was originally introduced on January 1, 1999, replacing the European currency unit. Banknotes and physical euro coins did not come into circulation until 2002. When it was introduced, the euro replaced the national currencies in the participating EU member states. The increase in its value since then and its importance in the world market have helped solidify its status as one of the most important currencies in today’s foreign exchange market. Along with the USD, the currency pair is by far the most important for forex due to its exposure to the two main economic blocs. What factors affect the EUR? There are several factors that affect the euro. Like most currencies, monetary policy is the most influential, in this case referring to the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, the money supply, interest rates and the relative strength of the euro. Euro currency traders are routinely tuned in to any ECB decision or announcement for this reason. With 19 sovereign member states, the euro is particularly vulnerable to political developments. Recent examples include the Greek debt crisis and Brexit, which could seriously affect the euro. Finally, economic data from the EU or from important member states such as Germany, France, Spain and others are also closely monitored. These include retail sales, unemployment claims, gross domestic product (GDP) and others.

The Euro (EUR) is the official currency of the European Union (EU) and 19 out of 27 member states at the time of writing. It is the world’s second most traded currency in foreign exchange markets after the US dollar. The euro was originally introduced on January 1, 1999, replacing the European currency unit. Banknotes and physical euro coins did not come into circulation until 2002. When it was introduced, the euro replaced the national currencies in the participating EU member states. The increase in its value since then and its importance in the world market have helped solidify its status as one of the most important currencies in today’s foreign exchange market. Along with the USD, the currency pair is by far the most important for forex due to its exposure to the two main economic blocs. What factors affect the EUR? There are several factors that affect the euro. Like most currencies, monetary policy is the most influential, in this case referring to the European Central Bank (ECB). The ECB is responsible for regulating monetary policy, the money supply, interest rates and the relative strength of the euro. Euro currency traders are routinely tuned in to any ECB decision or announcement for this reason. With 19 sovereign member states, the euro is particularly vulnerable to political developments. Recent examples include the Greek debt crisis and Brexit, which could seriously affect the euro. Finally, economic data from the EU or from important member states such as Germany, France, Spain and others are also closely monitored. These include retail sales, unemployment claims, gross domestic product (GDP) and others.
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