China's Benchmark Lending Rates Kept Unchanged

China's benchmark lending rates were kept unchanged, as expected by the market after the central bank held its policy rates steady earlier this month.

The one-year loan prime rate was kept steady at 3.45% and the five-year rate was maintained at 3.95%, according to data released by the People's Bank of China on Thursday.

Both the rates have been kept unchanged since February.

The rate hold was widely expected after the PBOC kept the rate of the medium-term lending facility steady this month. Banks are asked to price their LPR with interest rates of MLF.

Meanwhile, PBOC Gov. Pan Gongsheng said at a financial forum Wednesday that the bank would consider letting a short-term rate, such as the interest rate of the seven-day reverse repurchase agreement, guide markets and become the policy rate. Other monetary policy tools could gradually fade out as policy rates, he said without elaborating further.

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(END) Dow Jones Newswires

June 19, 2024 21:56 ET (01:56 GMT)

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