prime rate

On Monday, China’s central bank left the one- and five-year loan prime rate unchanged at 3.45% and 3.95%, in line with expectations.

China’s central bank kept its 1-year loan prime rate unchanged on Tuesday but cut its 5-year rate by 25 basis points to 3.95%.

Shanghai had retreated on selling by investors disappointed by China’s decision to keep the loan prime rate unchanged despite concern over the outlook for the economy, which is forecast to slow further after a post-pandemic recovery faded more quickly than expected.

China’s commercial banks kept their loan prime rate unchanged Monday amid downward pressure on the yuan, disappointing investors who anticipated measures to stimulate the economy.

China announced on Friday it was keeping its benchmark lending rates unchanged, with the one-year loan prime rate unchanged at 3.45% and the five-year LPR at 4.20%, in line with market expectations.