The People’s Bank of China (PBOC) is out with the latest statement, announcing that it has cut the one-year loan prime rate (LPR) to 3.70% at its January fixing.

Meanwhile, the five-year LPR was also trimmed to 4.6% in January.  

The five-year LPR was cut for the first since April 2020. In December 2021, the one-year was cut from 3.85% to 3.80%.

The AUD/USD pair is off the multi-day peaks on the PBOC rate decision, still holding onto most of the solid Australian jobs report-led gains. The spot is trading at 0.7245, up 0.49% on the day.