China kept its benchmark lending rates unchanged at today’s monthly fixing, aligning with market expectations. One-year Loan Prime Rate remained at 3.45%, while Five-year LPR stayed at 3.95%. This decision follows the People’s Bank of China’s move last week to maintain a key policy rate at 2.50% while rolling over maturing medium-term lending facilities.
Additionally, China announced on Friday a series of measures to stabilize its crisis-hit property sector, including the central bank facilitating CNY 1T in extra funding and easing mortgage rules. This strong supportive policy rollout has increased the likelihood of further monetary easing in the coming months.
Some economists now expect one or two cuts to LPR later this year, alongside a reduction in the reserve requirement ratio. These anticipated measures aim to bolster the property sector and sustain economic growth amid ongoing challenges.
