Chinese Banks Hold Lending Rates as Yuan Weakness Looms
- One-year benchmark loan prime rate kept unchanged at 3.7%
- Currency slump could reduce scope for more rate cuts
This article is for subscribers only.
Chinese banks maintained their lending rates for a third month, with the central bank’s cautious easing measures and a weaker yuan reducing the scope for further reductions in borrowing costs.
The one-year loan prime rate was held steady at 3.7%, the People’s Bank of China said Wednesday. A slight majority of 9 of the 16 economists surveyed by Bloomberg had expected a cut. The five-year rate, a reference for long-term loans including mortgages, was also unchanged at 4.6%.