2023.12.2004:13:00UTC+00China Keeps Benchmark Lending Rates Unchanged

China's central bank maintained its benchmark lending rates on Wednesday after the rate on the medium-term lending facility was kept unchanged last week.

The People's Bank of China kept the one-year loan prime rate, or LPR, unchanged at 3.45 percent.

The bank had previously lowered the one-year rate by 10 basis points in August. New and outstanding loans are based on the one-year LPR.

At the same time, the five-year LPR, the benchmark for mortgage rates, was retained at 4.20 percent for the sixth consecutive time.

The Chinese central bank fixes the LPR every month based on the submission of 18 designated banks. The LPR replaced the traditional benchmark lending rate in August 2019.

The PBoC was widely expected to leave the rates unchanged today after the rate on medium-term lending facility, which acts as a guide to loan prime rates, was maintained at 2.50 percent last week. The bank had added CNY 1.45 trillion into the financial system via MLF.

Official data released early this month showed that new yuan loans increased notably to CNY 1.09 trillion in November from CNY 738.4 billion in the previous month.