China kept its benchmark lending rates unchanged for a sixth straight month in November, in line with market expectations and reflecting policymakers’ preference for stability amid uneven economic conditions.
The one-year loan prime rate (LPR) — the reference for most corporate and household borrowing — remained at 3.0%, while the five-year LPR, which guides mortgage pricing, stayed at 3.5%. A Reuters poll of 23 market participants had unanimously expected no changes to either rate.
With credit demand still soft and the property sector struggling to regain traction, analysts say authorities appear reluctant to cut rates further due to pressure on bank margins and concerns about capital outflows.
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China's main policy rate now is the 7-day repo rate, currently at 1.4%
