SHANGHAI (Reuters) – China kept its benchmark lending rate for corporate and household loans unchanged at its July fixing on Tuesday, despite growing expectations for a cut after a surprise lowering of bank reserve requirements.
The one-year loan prime rate (LPR) was kept at 3.85%. The five-year LPR remained at 4.65%. The rate was unchanged for the 15th straight month.
Eleven traders and analysts, or 52.4% of 21 participants, in a snap Reuters poll conducted this week predicted no change in either rate, while the remaining 10 respondents all expected a cut to the one-year tenor.
Most new and outstanding loans in China are based on the one-year LPR. The five-year rate influences the pricing of mortgages.
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