Friday, December 8

China keeps benchmark lending rates unchanged, as expected

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SHANGHAI — China kept its benchmark interest rate for corporate and household lending unchanged at its monthly setting on Monday, as expected by traders and analysts.

The one-year loan prime rate (LPR) was held at 3.70% while the five-year LPR remained at 4.60%.

Just over half the traders and analysts surveyed in a snap Reuters poll last week expected China to keep both rates unchanged.

Most new and outstanding loans in China are based on the one-year LPR. The five-year rate influences the pricing of mortgages.

(Reporting by Winni Zhou and Andrew Galbraith; Editing by Sam Holmes)