Japan’s national CPI data for August is due out on Friday. We got the Tokyo CPI data for August, which came in higher than July:
- Tokyo area inflation data for August: 2.6% y/y (2.2% previously)
The Bank of Japan statement comes a few hours later. No change in interest rates is expected:
- Bank of Japan Meeting This Week – Preview (No Rate Change Expected)
We will also get the People’s Bank of China’s benchmark lending rate (LPR) determination. These benchmark lending rates remained unchanged in August:
- The base interest rate for the one-year loan was kept at 3.35%.
- The five-year rate was maintained at 3.85%.
People’s Bank of China’s Lending Rate (LPR):
- It is the benchmark interest rate used in China, set by the People’s Bank of China every month.
- The LPR serves as a reference rate for banks when setting interest rates on (primarily new) loans issued to their customers.
- Most new and outstanding loans in China are based on the one-year mortgage interest rate, while the five-year mortgage interest rate affects mortgage pricing.
- It is calculated based on the interest rates submitted daily to the People’s Bank of China by a panel of 18 selected commercial banks in China.
- The committee consists of domestic and foreign banks, with different weights assigned to each bank’s contributions based on its size and importance in China’s financial system.
- The interest rate on loans is based on the average rates offered by these banks, with the highest and lowest rates excluded to reduce volatility and manipulation. The remaining rates are then ranked, and the average rate becomes the interest rate on loans.
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- This image is from ForexLive’s economic data calendar, you can access it here.
- The times in the left column are GMT.
- The numbers in the right column are the “previous” result (previous month/quarter as the case may be). The number in the column next to that, where there is a number, is the expected consensus average.
This article was written by Eamonn Sheridan on www.forexlive.com.