China - PBOC to announce new reference rate for bank loans, to lower borrowing costs to firms

The People's Bank of China is to central bank begin releasing a new reference rate for bank loans

• Should see lower rates for business borrowing
• of benefit to SMEs especially

People's Bank of China will announce the new loan prime rate, or LPR, at 9:30am on the 20th of every month

• starting this week!
• commercial lenders will be required to set the price for new loans to businesses and households mainly with reference to the LPR
• price for outstanding loans can stay unchanged for now