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People’s Bank of China maintains benchmark lending rates at current levels
(MENAFN) On Tuesday, the People’s Bank of China decided to maintain its benchmark lending rates at their current levels, aligning with market expectations. This decision suggests a steady approach in their monetary policy as they continue to navigate the country's economic landscape.
The one-year loan prime rate (LPR), which serves as the primary reference for corporate and household loans, was kept at 3.35 percent. Meanwhile, the five-year LPR, which is typically used as the benchmark for mortgage rates, remains unchanged at 3.85 percent. These rates are critical indicators for the broader economy, affecting borrowing costs for both businesses and individuals.
In a surprising move back in July, the People’s Bank of China lowered several major interest rates, including both short-term and long-term rates, by 10 basis points. This marked the first time in nearly a year that the central bank had made such adjustments, indicating a shift in their strategy to stimulate economic activity and address slowing growth.
The decision to cut rates in July came unexpectedly, reflecting the central bank's responsive measures to emerging economic challenges. However, by keeping rates unchanged this time around, the People’s Bank of China appears to be balancing the need for economic support with the potential risks associated with further monetary easing, while also monitoring the impact of their previous rate cuts.
The one-year loan prime rate (LPR), which serves as the primary reference for corporate and household loans, was kept at 3.35 percent. Meanwhile, the five-year LPR, which is typically used as the benchmark for mortgage rates, remains unchanged at 3.85 percent. These rates are critical indicators for the broader economy, affecting borrowing costs for both businesses and individuals.
In a surprising move back in July, the People’s Bank of China lowered several major interest rates, including both short-term and long-term rates, by 10 basis points. This marked the first time in nearly a year that the central bank had made such adjustments, indicating a shift in their strategy to stimulate economic activity and address slowing growth.
The decision to cut rates in July came unexpectedly, reflecting the central bank's responsive measures to emerging economic challenges. However, by keeping rates unchanged this time around, the People’s Bank of China appears to be balancing the need for economic support with the potential risks associated with further monetary easing, while also monitoring the impact of their previous rate cuts.
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