Chinese banks kept their benchmark loan rates unchanged for September, after the slowdown in the world’s second-largest economy showed signs of stabilizing, following recent policy support.
The People’s Bank of China kept the key interest rate for the one-year loan unchanged, at 3.45 percent. The benchmark five-year loan rate was maintained at 4.2 percent, according to a statement issued on Wednesday by the People’s Bank of China.
Wednesday’s announcement is in line with economists’ expectations for September, after the People’s Bank of China kept the medium-term interest rate steady last Friday, following the second reduction in the reserve requirement ratio requirements this year for all banks that it announced last Thursday.
Data on retail sales and industrial production in China in August beat expectations.
In August, China cut its 1-year benchmark lending rate by 10 basis points, the second decline in 3 months, while unexpectedly keeping its 5-year benchmark lending rate unchanged.
The main loan interest rate in China is calculated each month from the proposed rates that the People’s Bank of China receives from 18 designated commercial banks.
2023-09-20 10:03:58
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