20/04/2022
Currency News Wednesday, 20th April 2022
People's Bank of China Loan Prime Rate
The People's Bank of China stated that the loan prime rate (LPR) will be computed on a new formation process starting August 20, 2019. The LPR is now calculated by the National Interbank Funding Center (NIFC), which serves as the pricing reference for bank lending, based on citations made by quoting banks—by adding a few basis points to the interest rate of open market operations (mainly referring to the rate of the medium-term lending facility, or MLF). The LPR now has rates with two maturities: one year and over five years. There are now 18 banks participating in the LPR quoting facilities. The quoting banks will submit their quotations to the NIFC by 9:00 a.m. on the 20th day of each month (postponed in the event of holidays), with a step length of 0.05 percentage points.
Canada Core Consumer Price Index (CPI) MoM
The change in the price of goods and services, excluding food and energy, is measured by the Core Consumer Price Index (CPI). The Consumer Price Index (CPI) measures price changes from the consumer's perspective. It's a crucial metric for determining changes in purchasing patterns and inflation.
A figure that is higher than expected is considered positive/bullish for the CAD, while a value that is lower than expected is considered negative/bearish.
Sources:
The People Banks of China
Statistics Canada (https://www.statcan.gc.ca/en/start)
