FX.co ★ China Maintains Loan Prime Rates

China maintained its benchmark loan prime rates unchanged on Monday despite the economic challenges.

After a reduction in May, the five-year loan prime rate, or LPR, the benchmark for mortgage rates, was retained at 4.45 percent, the People's Bank of China said Monday.

The rate was lowered by a record 15 basis points last month and by five basis points in January.

The one-year LPR was kept unchanged at 3.70 percent. The previous change in the rate was a five basis point cut in January.

The LPR is fixed monthly based on the submission of 18 banks, though Beijing has influence over the rate-setting. This lending rate replaced the central bank's traditional benchmark lending rate in August 2019.