China leaves benchmark lending rates unchanged in December
Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing, China, on Sep 28, 2018. (Photo: REUTERS/Jason Lee)
SHANGHAI: China left its benchmark lending rates unchanged at the monthly fixing on Friday (Dec 20), matching market expectations, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.
The one-year loan prime rate (LPR) was kept at 3.10 per cent, while the five-year LPR was unchanged at 3.60 per cent.
In a Reuters poll of 27 market participants conducted this week, all respondents expected both rates to stay unchanged.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
Chinese lenders last slashed lending benchmarks in October by bigger-than-expected margins to revive economic activity.
