China holds lending rates steady for fourth month

The People’s Bank of China keeps lending rates unchanged for a fourth straight month

China kept its benchmark lending rates unchanged for a fourth straight month, even after the US Federal Reserve cut interest rates last week.

The one-year loan prime rate (LPR) was left at 3%, while the five-year rate, which influences mortgage pricing, stayed at 3.5%, in line with expectations.

Authorities have delayed major stimulus measures despite recent stock market gains, even as a string of economic data has highlighted signs of domestic weakness.

The People’s Bank of China last cut the LPR in May, lowering it by 10 basis points as part of efforts to support the economy.

Last week, the central bank also left the seven-day reverse repo rate unchanged.