China Cuts One-Year Loan Prime Rate, But Holds Fire On Repo Rates

China didn't "follow" the Fed by cutting money market rates this week as some anticipated, but the door was still open for the second vintage of the revamped loan prime rate to tick lower, and sure enough, it did. The 1-year LPR rate for September is 4.20%, representing a 5bps cut from the inaugural print last month. The 5-year tenor is unchanged at 4.85%. As a reminder, China moved to simplify its two-track rate regime this year in a bid to bring down average borrowing costs. That effort culm