China leaves benchmark lending rates unchanged

China left benchmark lending rates unchanged for a third consecutive month, as expected, as a weakening yuan has limited Beijing's monetary policy easing efforts.

At the monthly fixing on Monday, the one-year loan prime rate was kept at 3.1 percent, while the five-year LPR was unchanged at 3.6 percent.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

In October 2024, Chinese lenders slashed lending benchmarks by bigger-than-expected margins to revive economic activity.

(Reuters)