China’s central bank on Tuesday kept its benchmark lending rates unchanged, in line with market expectations as Beijing held off on monetary easing to avoid increasing downside pressure on its currency.
The People’s Bank of China said it held the one-year loan prime rate steady at 3.65% and the five-year rate at 4.30%, according to a statement published on its website.
The PBOC determines its benchmark LPR using interest rates offered by 18 commercial banks to their best customers–rates that are themselves based on prevailing rates offered through the medium-term lending facility.
Five of China’s largest state-run banks cut personal deposit rates last week for the first time since 2015 as the country tries to revive an economy hit hard by a strict Covid policy.
The central bank surprised the market by lowering both its one- and five-year LPR rates in August to support the slowing economy.