China leaves benchmark lending rates unchanged in August, matching forecast

[SHANGHAI] China kept benchmark lending rates in August unchanged for the third consecutive month on Wednesday (Aug 20), in line with market expectations, as authorities signalled they are not in a rush to roll out monetary stimulus despite a string of recent disappointing economic data.

The one-year loan prime rate (LPR) was kept at 3.0 per cent, while the five-year LPR was unchanged at 3.5 per cent.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

In a Reuters survey of 23 market participants conducted this week, all participants predicted no change to either of the two rates. REUTERS