China Keeps Lending Benchmark Rates Unchanged, as Expected

CHINA - SHANGHAI/SINGAPORE. China kept benchmark lending rates unchanged at a monthly fixing on Monday, matching market expectations, as a weaker yuan continued to constrain further monetary easing and after the central bank kept its medium-term policy rate steady.

The one-year loan prime rate (LPR) was kept at 3.45%, while the five-year LPR was unchanged at 4.20%.

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In a poll of 26 market watchers conducted last week, all participants predicted no change to either the one-year or five-year LPRs.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

 

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