Wednesday, March 29, 2023
HomeEconomyChina keeps benchmark lending rate unchanged for fifth straight month

China keeps benchmark lending rate unchanged for fifth straight month


Add to/Remove from Watchlist

Join the watch list

Add location

Location added successfully:

Types of :

SHANGHAI (Reuters) – As expected, China left its benchmark lending rate unchanged for the fifth straight month on Friday, but analysts said cuts were likely ahead as the central bank pledged to support the economy. An economy disrupted by COVID.

One-year loan market quotation rate (LPR ) – latest and most outstanding loan based on – stay 3.%. The five-year LPR, considered the reference rate for mortgages, remained at 4. %. The last time China lowered the LPR was in August. The January LPR setting is in line with a Reuters poll this week, with nearly two-thirds of respondents expecting no change to the LPR. The upcoming Lunar New Year holiday, the decision of the People’s Bank of China (PBOC) to keep policy rates unchanged this month and a new mortgage rate mechanism were cited by analysts as reasons for the inaction. Still, analysts expect more policy easing to come. Capital Economics expects a rate cut could happen as early as next month.

China’s economy grew only 3% in

, far below the official target, while The government’s abrupt end to its zero-COVID policy has fueled hopes of a strong recovery. However, three years of zero COVID may have left scars that could hamper future consumption recovery, with Goldman Sachs (NYSE: 100GS) in a report on Thursday said in. The release of the January LPR is the last working day before the Chinese New Year holiday. Prior to this, China established a dynamic adjustment mechanism for mortgage rates for first-time buyers this month. The policy change has reduced the urgency to reduce the five-year LPR, analysts said. LPRs are calculated after each month Designated commercial banks submit quotations to the National Interbank Funding Center under the People’s Bank of China. 200



Please enter your comment!
Please enter your name here


Featured NEWS