Financial News: China Keeps Key Lending Rates Unchanged

China Keeps Key Lending Rates Unchanged

03/20/2024 - 04:32:00 (RTTNews)

(RTTNews) - China's central bank left its loan prime rates unchanged on Wednesday, as widely expected, as authorities monitor developments in the housing market and credit growth.

The People's Bank of China kept the five-year loan prime rate at 3.95 percent after lowering it by 5 basis points in February. The one-year LPR was retained at 3.45 percent.

The 5-year LPR was reduced in February to support the ailing housing market. The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing.

The LPR replaced the traditional benchmark lending rate in August 2019.

The status quo decision was widely expected as the medium-term lending facility, which is considered as a guide to loan prime rate, was left unchanged last week.

Data released this week showed an improvement in industrial production but retail sales posted a slower growth in January to February period.

The Chinese government aims to achieve growth target of around 5 percent in 2024. However, stimulus measures are likely to be needed to reach its goal.

The bank had lowered the reserve requirement ratio by 50 basis points with effect from February.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Eurozone Consumers' 12-Month Inflation Expectations Lowest Since Dec 2021 - ECB (05 min(s), 21 sec(s) ago)
(RTTNews) - Euro area consumers' inflation expectations for the next 12 months hit their lowes ...Full Story»

U.S. Consumer Sentiment Dips More Than Previously Estimated In April (01 min(s), 21 sec(s) ago)
(RTTNews) - Revised data released by the University of Michigan on Friday showed consumer sentimen ...Full Story»

U.S. Consumer Prices Rise 0.3% In March, Annual Growth Accelerates To 2.7% (11 min(s), 21 sec(s) ago)
(RTTNews) - Closely watched readings on inflation released by the Commerce Department on Friday sh ...Full Story»

Spain Unemployment Rate Rises In Q1 (43 min(s), 21 sec(s) ago)
(RTTNews) - Spain's unemployment rate increased at the start of the year, quarterly data from ...Full Story»

U.S. Consumer Prices Rise In Line With Estimates In March (24 min(s), 21 sec(s) ago)
(RTTNews) - Closely watched readings on inflation released by the Commerce Department on Friday sh ...Full Story»

Russia Central Bank Keeps Key Rate Unchanged (15 min(s), 21 sec(s) ago)
(RTTNews) - Russia's central bank left its key interest rates unchanged for the third consecut ...Full Story»

Austria Manufacturing Downturn Continues In April (54 min(s), 39 sec(s) ago)
(RTTNews) - Austria's manufacturing activity deteriorated further in April, though the pace of ...Full Story»

Eurozone Private Sector Credit Growth Remains Weak (01 hr(s), 25 min(s), 39 sec(s) ago)
(RTTNews) - Eurozone private sector credit continued to increase in March but the pace of recovery ...Full Story»