SHANGHAISINGAPORE, Sept 20 Reuters China kept benchmark lending rates unchanged at a monthly fixing on Wednesday, in line with expectations, as fresh signs of economic stabilisation and a weakening yuan reduced the need for immediate monetary easing.

Recent economic data showed the world39;s secondlargest economy was finding its footing after a sharp slowdown, while yuan declines have reduced the urgency for authorities to aggressively lower interest rates to prop up growth.

The oneyear loan prime rate LPR was kept at 3.45, while the fiveyear LPR was unchanged at 4.20.

Most new and outstanding loans in China are based on the oneyear LPR, while the fiveyear rate influences the pricing of mortgages.

In a Reuters survey of 29 market analysts and traders, all participants predicted no change to the oneyear LPR, while a vast majority of them also expected the fiveyear rate to remain steady.

The steady LPR fixings follow the central bank39;s decision last week to roll over maturing mediumterm policy loans and keep interest rate on those loans unchanged.

The mediumterm lending facility MLF rate serves as a guide to the LPR and markets see it as a precursor to any changes to the lending benchmarks.

Widening yield differentials with other major economies, particularly the United States, and faltering domestic growth have pressured the Chinese yuan down more than 5 against the dollar this year, prompting authorities to ramp up efforts to rein in the weakness.

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