China leaves benchmark lending rate unchanged amid better economic data
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
China kept its benchmark lending rates unchanged at the monthly fixing on Friday, matching market expectations, as a set of economic data suggested the economy is stabilising and a weaker yuan constrained further monetary easing.
The one-year loan prime rate (LPR) was kept at 3.45 per cent, while the five-year LPR was unchanged at 4.20 per cent.
In a Reuters survey of 29 market analysts and traders, almost all participants predicted no change to the one-year LPR, while all had expected the five-year rate to remain steady.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
China cut the one-year benchmark lending rate in August but surprised markets by keeping the five-year rate unchanged.
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