China Maintains Unchanged Lending Benchmark Rates as Predicted

China has kept its benchmark lending rates unchanged at a monthly fixing, in line with expectations, as a weaker yuan limits further monetary easing and policymakers wait to assess the impact of previous stimulus measures on credit demand. The one-year loan prime rate (LPR) remains at 3.45% and the five-year LPR at 4.20%. While the economy still requires more policy stimulus, an escalation of monetary easing could put unwanted downward pressure on the Chinese currency.