China today kept its key one-year lending rate, a market-based benchmark for lending rates, unchanged from last month at 3%.
The National Center for Interbank Finance of China reported that the key interest rate for loans over five years, which many lenders rely on when determining mortgage rates, remained unchanged from the previous 3.5%.
At a board meeting that ended this morning, China’s central bank left its benchmark interest rate unchanged for nine consecutive months, achieving a balance between supporting growth and stabilizing the renminbi.
wide range of stimulation
The stabilization of interest rates indicates that policymakers are prioritizing financial stability and monetary stability at the expense of monetary easing, despite continued pressures on the economy, and economic growth momentum has fallen to its lowest level since the reopening of the economy after the coronavirus pandemic.
China’s decision to keep interest rates on hold raises expectations for targeted rather than broad-based stimulus, while a stronger yuan could dampen export momentum and reduce room for aggressive monetary easing.
China today left its market-based benchmark lending rate, the one-year prime loan rate, unchanged at 3% from last month.
China’s National Interbank Funding Center reported that the loan prime rate for loans over five years, which some lenders rely on in determining mortgage rates, remained unchanged from the previous 3.5%.
At a meeting that ended this morning, the People’s Bank of China announced that it had kept its benchmark interest rate unchanged for nine consecutive months, achieving a balance between supporting growth and stabilizing the renminbi.
extensive stimulation
Stability in interest rates indicates that policymakers are prioritizing financial stability and monetary stability over monetary easing, despite continued pressures on the economy, pushing growth momentum to its lowest level since economic reopening following the COVID-19 pandemic.
China’s decision to keep interest rates on hold raises expectations for targeted rather than broad-based stimulus, while a stronger yuan could dampen export momentum and reduce room for aggressive monetary easing.
