China Pauses Rate Cuts as Focus Shifts to Credit Stability
- Unchanged loan prime rates in line with market expectations
- Gov’t calls on banks to stabilize pace of credit extension
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China may be done with rate cuts for now as policymakers turn to other means to support the economy and stabilize credit growth headed into the new year.
The nation’s commercial lenders maintained their benchmark lending rates — including the five-year loan prime rate used as a reference for mortgages — on Monday. That was broadly in line with expectations after the People’s Bank of China kept a key policy rate called the medium-term lending facility rate on hold last week. The loan rates are quoted as a spread over that rate and usually but don’t always track its moves.