China holds benchmark lending rates steady as expected

China held benchmark lending rates steady for the fifth straight month in March on Thursday, matching market expectations.

The one-year loan prime rate (LPR) was kept at 3.1 percent, while the five-year LPR was unchanged at 3.6 percent.

In a Reuters poll of 33 market participants conducted this week, 29, or 88 percent of them expected no changes to either of the two rates.

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