Chinese Banks Hold Lending Rates as PBOC Remains Cautious

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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, 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.

A recent mortgage payment boycott by buyers of unfinished homes had prompted calls for more policy help for the property sector, including a reduction in the five-year LPR. 

Bloomberg

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