China kept its benchmark lending rates unchanged at a monthly fixing on Tuesday in line with expectations, as authorities appeared to hold off immediate monetary easing following recent rapid yuan declines, reports Nikkei Asia.
The one-year loan prime rate (LPR) was kept at 3.65%, while the five-year LPR was unchanged at 4.30%. In a Reuters poll conducted this week, 21 out of 28 respondents, or 75% of all participants, predicted no change to either rate.
The steady LPR fixings came after the People’s Bank of China (PBOC) last week left its medium-term policy rate unchanged, while draining some liquidity from the banking system. Analysts said policymakers are carefully striking a balance between supporting a slowing economy and not creating new economic risks.