China’s central bank kept its benchmark lending rates unchanged Tuesday as authorities navigate a balancing act of supporting a slowing economy while maintaining currency stability.
The People’s Bank of China held its 1-year and 5-year loan prime rates at 3% and 3.5%, respectively, keeping them steady for a tenth straight month despite stuttering economic growth.
The 1-year rate serves as the benchmark for most new and outstanding loans, while the 5-year level influences mortgages.
The world’s second-largest economy showed signs of slowing down in the final quarter of last year, expanding 4.5% year on year, its slowest pace since the country lifted its stringent Covid curbs in late 2022.
Chinese authorities have struggled to lift the economy out of an entrenched deflation as consumers cut back spending amid a prolonged real estate downturn, a bleak job market and uncertain income prospects.
