SHANGHAI (Reuters) – China unexpectedly left benchmark lending rates unchanged at the monthly fixing on Friday, despite the Federal Reserve delivering an outsized interest rate cut earlier this week.
The one-year loan prime rate (LPR) was kept at 3.35%, while the five-year LPR was unchanged at 3.85%.
In a Reuters survey of 39 market participants conducted this week, 27, or 69%, of all respondents expected both rates to be trimmed.
Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.
China surprised markets by cutting major short and long-term interest rates in July, its first such broad move in almost a year, signalling policymakers’ intent to strengthen economic growth.
(Reporting by Shanghai Newsroom; Editing by Jacqueline Wong)
