China's Unchanged Lending Rates and Stimulus Measures Boost Investor Confidence
Originally Published 2 years ago — by Reuters
China's central bank has left its benchmark lending rates unchanged, in line with market expectations. The one-year loan prime rate (LPR) remains at 3.45%, while the five-year LPR stands at 4.20%. Despite this decision, analysts anticipate further monetary easing in the coming year to support the country's struggling economic recovery. The LPR is loosely tied to the medium-term lending facility (MLF) rate, and changes in the MLF are often seen as a precursor to changes in the LPR. Some experts believe that the central bank may prioritize lowering deposit rates rather than loan prime rates due to tight interest margins for Chinese banks.