China Keeps Interest Rates Unchanged

(RTTNews) - The People's Bank of China maintained its interest rates unchanged for the second straight session on Friday.

The PBoC maintained its one-year loan prime rate at 3.10 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.60 percent. The move was widely expected.

The bank had cut its both LPRs by 25 basis points each in October.

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.

Beijing has unveiled a range of fiscal and monetary easing to uplift the economy. But recent economic data suggests that the economy still faces deflationary pressures and domestic demand remain subdued.

The announcement came after the US Federal Reserve reduced its interest rate by an additional quarter point on Wednesday as widely expected by analysts. However, Fed official indicated fewer than previously forecast rate cuts next year.