China Maintains Benchmark Lending Rates for 17th Consecutive Month
China holds benchmark lending rates steady as third-quarter GDP growth exceeds forecasts, signaling a pause in near-term monetary easing efforts.
POLICY WIRE — Beijing, China — China is poised to maintain its benchmark lending rates for the 17th month in a row this October. This decision follows third-quarter gross domestic product figures that surpassed initial projections, diminishing the immediate necessity for monetary easing.
The one-year loan prime rate will remain at 3.00%, while the five-year loan prime rate is set to hold at 3.50%. These rates serve as the foundation for the majority of new and outstanding loans, with the five-year benchmark specifically impacting mortgage pricing.
Market participants are closely monitoring the People’s Bank of China to understand how officials intend to balance export-led growth against the ongoing challenges within the property sector. The current stability reflects a strategic pause in stimulus measures following signs of economic resilience.
Reporting by Policy-Wire (PW)
