China's first reformed LPR one year rate comes in slightly lower

China has set the new 1-year loan prime rate (LPR) at 4.25%, vs 4.31% previously

• 5-year loan prime rate 4.85%

These LPR settings are the first for this new lending reference. The rate is set by 18 banks with a spread above the 3.3% currently on the one year Medium term Lending Facility.

Should be a slight stimulus impact.

• The PBOC's lower rates on new loans to business kicks in today ... but ...
• UBS expect the impact will likely be "very muted", citing weak credit demand and that cheaper funding won't be enough to encourage firms to spend more.