China keeps one-year prime lending rate unchanged at 3.65%

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China’s central bank kept benchmark lending rates unchanged on Tuesday, in line with market expectations as Beijing delayed monetary easing to avoid increasing downward pressure on its currency.

The People’s Bank of China said it was keeping the one-year prime lending rate at 3.65% and the five-year rate at 4.30%, according to a statement on its website.

The restraint on the LPR was in line with market expectations, as the central bank left its key medium-term lending facility rates unchanged last week.

The PBOC determines its benchmark LPR using the interest rates offered by 18 commercial banks to their best customers – rates which are themselves based on prevailing rates offered through the medium-term loan facility.

Five of China’s biggest state-owned banks slashed retail deposit rates last week for the first time since 2015 as the country tries to revive an economy hit hard by strict Covid policies.

The central bank surprised the market by lowering its one- and five-year LPR rates in August to support the slowing economy.

 

Write to the Singapore editors at singaporeeditors@dowjones.com

 

(END) Dow Jones Newswire

September 19, 2022 9:48 p.m. ET (01:48 GMT)

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