China left lending benchmarks unchanged, as expected

SHANGHAI/SINGAPORE  – China kept benchmark lending rates unchanged at the monthly fixing on Thursday, matching market expectations.

The one-year loan prime rate (LPR) was kept at 3.55 percent, while the five-year LPR was unchanged at 4.2 percent.

In a poll of 26 market watchers conducted this week, all participants predicted no change to either of the two rates.

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 cut both LPRs in June to boost the economy.