BEIJING — China’s central bank on Wednesday held its benchmark loan rates unchanged as expected, after it kept its key policy rates stable last week.
The People’s Bank of China said the one-year Loan Prime Rate stayed at 3.7%, while the five-year rate remained at 4.6%.
Keeping the LPR on hold was widely expected after the PBOC disappointed the market last week by maintaining the interest rates of its medium-term lending facility and reverse repurchase agreements.
The Chinese economy has been under intense pressure from domestic Covid-19 flare-ups and large-scale lockdowns and prevention measures to contain the virus spread.
The central bank said last week that it would lower the amount of deposits banks have to set aside, releasing billions of dollars of liquidity into the banking system.