China leaves lending rates unchanged in line with expectations

ANKARA

The People’s Bank of China (PBoC) on Wednesday decided to leave its benchmark lending rates unchanged, meeting market forecasts.

The one-year loan prime rate (LPR) – the medium-term lending facility uses for corporate and household loans – was left at a record low of 3.45% after a 10 basis point cut in August.

The five-year LPR, the peg for mortgages, meanwhile, remained at 4.2% for the third consecutive month.

Last week, the bank kept its medium term facility loan rate steady at 2.50%.

Despite China’s economy showing signs of improvement last month, the overall economic outlook remains uncertain due to weak overseas demand and a property downturn.

China’s gross domestic product (GDP) grew 0.8% on a quarterly basis in the second quarter of 2023, easing from a 2.2% growth in the previous period.

• China
• lending rates
• LPR