Economics
Chinese Banks Hold Lending Rates as PBOC Remains Cautious
- All 19 economists polled forecast no change in one-year LPR
- Mortgage boycott prompts calls for cut in five-year LPR
People's Bank of China headquarters in Beijing.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
Chinese banks held their main lending rates steady in the absence of more easing from the central bank, which is trying to strike a balance between preventing faster inflation and supporting the economy.
The one-year loan prime rate was left unchanged at 3.7%, in line with all 19 forecasts in a Bloomberg poll of economists, according to a statement by the People’s Bank of China on Wednesday. It was last lowered in January. The five-year rate, a reference for mortgages, was maintained at 4.45%, in line with most projections.