The Strategist

China's central bank expectedly keeps prime rate at 3.45%

03/20/2024 - 09:08

The benchmark lending rate (LPR) for one year was maintained at 3.45% annually by the People's Bank of China (PBOC), the nation's central bank.

Dinkun Chen
Dinkun Chen
Five-year borrowing rates remained at 3.95%, historically low.

In February, the Chinese central bank reduced the five-year loan rate by 25 basis points in an attempt to prop up the economy, which was being battered by a persistent downturn in the real estate sector and a decline in consumer confidence.

On average, traders surveyed by Trading Economics predicted that neither of the rates will move in March.

The LPR replaced the previous benchmark In August 2019 as a result of interest rate reforms implemented by the Chinese central bank.