China’s central bank kept its loan prime rates steady on Monday, even as the world’s second largest economy has seen weak economic data and an extended slump in its property sector.
The People’s Bank of China kept its 1-year and 5-year loan prime rates unchanged at 3% and 3.5% respectively, holding them for a seventh straight meeting, in line with a Reuters survey.
The 1-year rate acts as a benchmark for new loans, while the 5-year helps peg mortgage rates.
The PBOC’s decision comes amid downbeat economic data from China in November, including lower-than-expected retail sales and industrial output.
Retail sales rose 1.3% last month from a year earlier, sharply missing Reuters’ median forecast for a 2.8% growth, and slowing from 2.9% rise in the prior month.
