Chinese Banks Hold Lending Rates After PBOC Signals Caution

(Bloomberg) — Chinese banks kept their benchmark lending rates unchanged for August, as profit margins come under pressure and policymakers focus on the health of financial institutions.

The one-year loan prime rate will stay at 3.35% and the five-year rate, a reference for long-term credit including mortgages, remains at 3.85%, according to a Tuesday statement from the People’s Bank of China. The moves were in line with the forecasts of all economists surveyed by Bloomberg.