China Holds Lending Rates Steady for 16th Month — SkimNews
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- China kept its loan prime rates steady in September, marking the 16th straight month without a change to the benchmark lending rates.
- China held the one-year loan prime rate (LPR) at 3%, with no adjustment to the five-year LPR, preserving the status quo for business and mortgage borrowing costs.
- China's central bank maintained existing rates despite global movements, including Federal Reserve rate hikes that have narrowed Beijing's room to cut borrowing costs.
- China has now gone over a year without altering its LPRs, signaling sustained monetary policy caution amid external economic pressures.
Why it matters: With the U.S. raising rates, China's unchanged lending rates limit its ability to stimulate growth through cheaper credit, increasing pressure on policymakers to rely on fiscal tools or targeted measures to support the economy in the near term.
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