China Maintains Status Quo on Lending Rates in May

China kept its benchmark lending rates unchanged for the ninth month in May, as a weakening yuan and widening yield differentials with the United States limited the scope for any substantial monetary easing. Some analysts now expect the People's Bank of China (PBOC) could lower the amount of cash banks must set aside as its next policy move. The steady LPR fixings also came after the PBOC rolled over maturing medium-term lending facility (MLF) loans while keeping the interest rate unchanged last week.