Chinese Banks Hold Benchmark Lending Rates as Yuan Slides

Investors lowered their expectations for further monetary easing in recent weeks as the yuan tumbled past 7.2 per dollar to the weakest since 2008. Photo: Bloomberg

(Bloomberg) — Chinese banks maintained their benchmark lending rates for a second month, with economists dialing down expectations for further central bank easing as the yuan continues to weaken.

The one-year loan prime rate (LPR) was left at 3.65%, according to a statement by the People’s Bank of China Thursday. Fifteen of the 16 economists surveyed by Bloomberg had expected the rate to remain unchanged. The five-year rate, a reference for mortgages, was also maintained at 4.3%, in line with expectations.