China Banks Unexpectedly Keep Loan Prime Rate Steady
- One-year LPR stays at 4.2% for October versus 4.15% estimate
- Data last week signaled economic growth is still weakening
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China’s base rate for new corporate loans stayed unchanged in October, defying expectations of a reduction as the economy sees its slowest pace of growth since the early 1990s.
The one-year loan prime rate was kept at 4.2%, according to a statement from the People’s Bank of China on Monday. That compares to the 4.15% median estimate compiled by Bloomberg. The five-year tenor was also kept unchanged at 4.85%.