PBOC holds LPRs steady; carries out reverse repo operations

Wednesday, November 19, 2025 at 02:15 UTC+01:00 (+0100), China, Beijing

News category : Macroeconomic Events

On November 19 the People's Bank of China announced it would keep key lending reference rates (the one- and five-year LPR) unchanged and conducted seven-day reverse repo operations to smooth liquidity. Official commentary and the central bank’s operational moves pointed to a shift away from aggressive, broad easing toward more targeted support—keeping policy rates steady while using open-market operations for short-term liquidity management. Markets interpreted the stance as stabilising for onshore rates and supportive for risk assets tied to Chinese growth, although some analysts warned that lacklustre credit demand means fiscal measures may be needed to lift longer-term growth momentum. The PBOC’s balance of maintaining access to liquidity while not cutting rates further had immediate effects on CNY forwards and domestic bond yields.

Overall market impact

Light bullish market impact - strength score : 65/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

CNH/CNY FX

Chinese government bonds (CGBs)

Asian equities

Chinese bank equities

Commodities sensitive to China demand (copper, iron ore)

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