Major Chinese lenders left their key lending rates unchanged Wednesday in an expected move, as policymakers stuck to a cautious policy stance even as growth momentum has sputtered recently.
China's one-year loan prime rate was held at 3.0% and the five-year rate at 3.5%, according to data released by the People's Bank of China. Both rates have remained unchanged since May last year.
After the Chinese economy achieved a better-than-expected growth rate in the first quarter, Chinese leadership in late April struck a confident tone over the country's economic outlook and dropped direct reference to monetary tools, including rate cuts, during a quarterly meeting on economic affairs.
That prompted some investment banks to dial back their expectations for monetary easing in China later this year.
Although a fresh set of downbeat data showed weaker economic activity in April, reigniting hopes for imminent policy support, economists say authorities are unlikely to depart from "wait-and-see" mode anytime soon as they gauge the fallout of the Middle East conflict.
