Xinhua _ China kept its benchmark lending rates unchanged for the 17th consecutive month in October, as policymakers balance the need to support economic growth against pressure on bank profitability.
One-year LPR held at 3.00% .. and 5-year at 3.50%
The one-year Loan Prime Rate (LPR) was held at 3.00%, while the five-year LPR remained at 3.50%, according to data released on Tuesday. Both rates aligned with market expectations and their previous readings.
The one-year LPR serves as the primary benchmark for most new and outstanding loans, influencing borrowing costs for businesses and households.
The five-year rate is used as a benchmark for mortgages and other long-term loans.
The decision followed data showing that the Chinese economy grew by 4.5% year-on-year in the third quarter, accelerating from the 4.3% pace recorded in the previous quarter and surpassing expectations.
Strong exports helped offset weak domestic consumption, while the real estate sector remained under pressure.
Policymakers see no immediate need for broad monetary easing
Holding rates steady indicates that policymakers see no immediate need for broad monetary easing, even as persistent weakness in housing demand and investment continues to pose ongoing challenges.
Investors will be awaiting further signals from the People's Bank of China regarding the monetary policy path and additional support measures, as Beijing seeks to achieve its set economic growth target for 2026 of between 4.5% and 5.0%.
