FX.co ★ China's PBoC Holds Steady on Loan Prime Rate at 3.35%

In a widely anticipated move, the People's Bank of China (PBoC) has opted to maintain its loan prime rate at 3.35%, unchanged from the previous rate. This decision was confirmed on September 20, 2024, and marks a consistent approach amidst fluctuating global economic conditions.

As China continues to navigate an era of moderate economic growth and complex external pressures, the stability of the loan prime rate suggests a strategic focus on sustaining liquidity and encouraging borrowing without igniting inflationary strains. The decision aligns with the central bank's ongoing measures to carefully balance economic support while keeping a close watch on financial risks.

Market analysts and investors had largely predicted this move, viewing it as a sign of the PBoC's commitment to a cautious yet supportive monetary policy stance. With the rate holding steady, businesses and consumers alike can have a clearer outlook on borrowing costs, which in turn, could foster sustained economic activity in the months ahead.