Interest rates in China remain unchanged

In China, the benchmark 1-year prime rate for bank loans was kept unchanged at 3.65 percent. The 5-year benchmark rate was also left at 4.30 percent. In China, which has been diverging from the global trend in monetary policy, benchmark interest rates were also kept unchanged. The People’s Bank of China kept the 1-year loan prime rate (LPR) at 3.65 percent and the 5-year rate at 4.30 percent, in line with market expectations. Marco Sun, chief financial markets analyst at MUFG Bank, said in an assessment that the People’s Bank of China is likely to cut the 5-year LPR by 10 to 15 basis points in the next few months. ANZ’s China strategist Xing Zhaopeng also said in an assessment that, “There is a possibility that the 5-year LPR will be cut by 5 basis points in December to address the contraction in the real estate market.”