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China Holds Loan Prime Rates Steady for Seventh Month Amid Weak Economic Data
China's central bank kept loan prime rates steady at 3% and 3.5% for the seventh month despite weak November data and a prolonged property slump, officials said.
- On Dec 22, the People's Bank of China left benchmark loan prime rates unchanged for a seventh consecutive month, keeping the 1-year LPR at 3% and the 5-year at 3.5%, matching a Reuters survey.
- Chinese authorities signalled restraint, preferring fiscal measures as growth seems on track, with the CEWC pledging a proactive fiscal policy and China's finance ministry planning ultra-long-term bonds next year.
- November data showed the economy has weakened, with retail sales up 1.3% last month and industrial production rising 4.8%, both below forecasts amid property sector weakness.
- Household borrowing and mortgage demand face pressure as new bank loans rose less than expected, with the 1-year LPR benchmarking new loans and the 5-year LPR influencing mortgage rates amid banks facing record-low profit margins.
- Market watchers note cross-cyclical policy adjustments and record-low profit margins may let Beijing delay stimulus until next year, while investment in fixed assets contracted 2.6%.
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13 Articles
In terms of the deepening of the Chinese economy, the additional cuts for the rest of the year have been completed by n.
·Porto, Portugal
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Total News Sources13
Leaning Left2Leaning Right0Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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