China leaves lending benchmarks unchanged in May, matching expectations

SHANGHAI/SINGAPORE  – China kept its benchmark lending rates unchanged for the ninth straight month on Monday, matching market expectations for May.

China’s one-year loan prime rate (LPR) was kept at 3.65 percent and its five-year LPR was unchanged at 4.3 percent.

In a Reuters poll of 26 market watchers conducted last week, 23 predicted no change to the rates for this month.

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 last cut both LPRs in August 2022 to boost the economy.