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SHANGHAI (Reuters) – China left its benchmark interest rates unchanged at the monthly setting on Friday, in line with market expectations, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.
The one-year lending prime rate (LPR) remained at 3.10%, while the five-year LPR remained unchanged at 3.60%.
In a Reuters poll of 27 market participants this week, all respondents expected both rates to remain unchanged.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences mortgage pricing.
Chinese lenders last cut credit benchmarks in October by larger-than-expected margins to revive economic activity.
