China holds benchmark lending rates steady

By Tuba Ongun

The People’s Bank of China (PBoC) left its benchmark interest rates unchanged Wednesday, meeting the market forecast.

The one-year loan prime rate (LPR) – the medium-term lending facility used for corporate and household loans – was held at a record low of 3.45% for the fourth consecutive month, having been last lowered in August from 3.55%.

Meanwhile, the five-year LPR, the peg for mortgages, was kept at 4.2% for the sixth straight month after cutting it from 4.3% in June.

The bank held its key policy rate, called the medium-term lending facility rate (MLF), steady last week.