China kept its benchmark lending rate steady for the third straight month on Monday, matching market expectations, amid signs that the world’s second-largest economy is recovering from the shock coronavirus pandemic, reported Reuters.
The one-year loan prime rate (LPR) was kept unchanged at 3.85%, while the five-year LPR remained at 4.65%.
Most new and outstanding loans are based on the LPR, while the five-year rate influences the pricing of mortgages.
Thirty-four out of 36 participants in a Reuters survey had expected no adjustment to LPR in July after the People’s Bank of China kept borrowing cost on medium-term lending facility (MLF) unchanged last week.