Economic Buzz: China Keeps Loan Prime Rates Unchanged At 3.65%

20 Oct 2022 , 01:14 PM

China kept its main lending rates unchanged for the second straight month as the yuans weakness limited the scope for policy loosening. The Peoples Bank of China retained its one-year loan prime rate, or LPR, at 3.65 percent. Likewise, the five-year LPR, the benchmark for mortgage rates, was kept unchanged at 4.30 percent. The LPR is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. The LPR replaced the central banks traditional benchmark lending rate in August 2019. The economy was expected to expand at a faster pace of 3.4 percent in the third quarter. Nonetheless, the expected growth is well below Beijings growth target of around 5.5 percent for the whole year.Powered by Commodity Insights