(RTTNews) – China on Friday maintained its benchmark credit interest rates, as expected.
The prime rate for one-year loans remained at 3. 85, consistent with cent, and the prime rate for five-year loans, at 4. 65, consistent with cent.
Prime rates for one-year and five-year loans were last reduced in April 2020; the prime rate for one-year loans was reduced through 20 foundation issues and the five-year rate through 10 foundation issues in April 2020.
Markets expected LPR rates to remain unchanged as the People’s Bank of China kept its medium-term credit line rate unchanged earlier this month.
As the economy loses momentum, it may not be long before the PBoC pushes rates lower, said Julian Evans-Pritchard, an economist at Capital Economics. Still, some other set of large-scale credit-oriented stimulus measures don’t seem to work at this point.
It is vital to note that any rate cut is likely primarily aimed at reducing monetary stress than at supporting credit growth, the economist said.