China left its one-year loan prime rate at 3.00% for a 17th month. Governor Pan Gongsheng proposed making the 1.25% overnight reverse repo the main policy rate, 15 basis points below the seven-day rate.
Nine-month GDP of 4.6% keeps Beijing inside its 4.5–5% band even as the PBOC holds the LPR, with NBS saying new drivers already account for more than 40% of growth. Source
Nothing moved on Tuesday. The one-year loan prime rate (LPR) stayed at 3.00% and the five-year at 3.50%, a 17th straight month without a change, and all 22 respondents in a Reuters survey had called the hold. The more telling move came a day earlier, when People's Bank of China (PBOC) governor Pan Gongsheng told the Financial Street Forum the bank will study making the overnight reverse repo its main policy rate in place of the seven-day. By Wednesday the PBOC had run an overnight operation of ¥80bn and no seven-day operation at all.
