China’s benchmark lending rates remained unchanged, the country’s central bank said Monday, as the world’s second-largest economy showed more signs of recovery since reopening to COVID.
The one-year loan price rate was unchanged at 3.65% and the five-year LPR was flat at 4.3%, the People’s Bank of China said.
The unchanged LPR was widely expected by the market after the PBOC kept a policy rate – the interest rate on the medium-term loan facility used to price the LPR – stable at the start of the month.
The move also came after China’s economy showed more signs of recovery following its Covid reopening, with spending in travel, catering and other service sectors rebounding strongly in recent weeks.
Still, many economists expect the PBOC to lower lending standards this year to boost domestic demand, which has been identified as a priority by Chinese leaders for this year.
