China keeps benchmark lending rates constant as expected

By Mucahithan Avcioglu

ISTANBUL (AA) - The People’s Bank of China on Thursday kept its benchmark lending rates unchanged for a fourth consecutive meeting, in line with market expectations, according to state Xinhua news.

The one-year loan prime rate (LPR), a key metric for corporate and household loans, remained constant at 3.10%.

Similarly, the five-year LPR, which serves as a benchmark for mortgages, stayed at 3.6%.

Both rates remain at record lows, following cuts both last July and October.

The decision comes in the wake of the US Federal Reserve chair's remarks about "being in no hurry to cut interest rates.”

"China will further strengthen counter-cyclical adjustments by leveraging a range of monetary policy tools, including interest rates and the reserve requirement ratios, to maintain ample liquidity and ensure a supportive environment for social financing," Xuan Changneng, deputy governor of the People's Bank of China (PBOC), said last month.