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China keeps benchmark interest rate steady

China, one of the world's economic giants, announced that it has kept the benchmark lending interest rate, which it has kept constant for 19 months, while experiencing the negative conditions of the coronavirus epidemic.

China keeps benchmark interest rate steady

In line with expectations, China kept its benchmark lending rate (LPR) constant for companies and households in November. The People's Bank of China has kept the benchmark interest rate unchanged for 19 months.

Accordingly, the one-year loan prime rate (LPR) remained constant at 3.85 percent and the 5-year LPR at 4.65 percent.

EXPECTATION WAS NO CHANGE

A survey by Reuters last week showed that 21 out of 23 respondents expected no change in either ratio.

Most new and existing loans in China are priced at a one-year LPR, while home loans are priced at a 5-year LPR.

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