China holds loan prime rate steady despite Q2 growth miss

(Sharecast News) - China left its key lending benchmarks unchanged on Monday, holding fire on monetary easing despite a sharper‑than‑expected slowdown in second‑quarter growth. The People's Bank of China kept the one‑year Loan Prime Rate at 3.0% and the five‑year LPR at 3.5%, marking a 14th straight month without adjustment. The one‑year rate serves as the benchmark for most loans, while the five‑year rate underpins mortgage pricing.

The decision came even as China reported a 4.3% GDP expansion for Q2, a print that undershot market expectations. Authorities have so far refrained from cutting policy rates, with the LPR effectively functioning as the country's benchmark rate.

A hold had been widely anticipated, with a Reuters poll of 23 market participants last week showed unanimous expectations for no change.







Reporting by Iain Gilbert at Sharecast.com