China holds rates steady, signals tolerance for a stronger yuan
China's central bank left its benchmark lending rates unchanged for the tenth straight month, keeping the 1-year LPR at 3% and the 5-year LPR at 3.5% while signaling tolerance for a gradually stronger yuan as it seeks to support a slowing economy and shift toward services demand. The yuan has firmed recently, and authorities hope this currency appreciation will coexist with export pressures amid a weak consumer outlook and ongoing real estate weakness.