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The People’s Bank of China maintained lending rates at the September fixing, as policymakers assessed the impact of previous easing measures, including an interest rate cut in August and a recent reduction in the reserve requirement ratio for banks.
The one-year loan prime rate (or LPR), which is the medium-term lending facility used for corporate and household loans, was kept unchanged at a record low of 3.45%; and the five-year rate, a reference for mortgages, was held at 4.2% for the third straight month.
Wednesday’s move was in line with market expectations, coming after the central bank last week left its medium-term policy rate unchanged.
China’s economy showed some signs of improvement in August, particularly in industrial production and retail sales. Inflationary conditions also improved after the country slipped into deflation earlier this year.
However, the overall outlook for the economy remains uncertain, amid weak overseas demand and a property downturn.
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