China's central bank maintained its key lending rates unchanged on Friday, balancing the need to stimulate economic growth while addressing a weakening yuan. The decision came as the country grapples with persistent deflation and sluggish consumer demand.
China kept its main benchmark lending rates unchanged on Friday, as Beijing faces the challenge of bolstering economic growth while backstopping a weakening yuan.the one-year loan prime rate at 3.1%, with the five-year LPR at 3.6%. The 1-year LPR affects corporate and most household loans, while the 5-year LPR serves as a reference for mortgage rates. The move was expected according to a Reuters poll of 27 economists.
The Fed also indicated it will only reduce interest rates twice in 2025, fewer than the four cuts in its September meeting's projection.The Fed's revised outlook on future rate cuts is unlikely to have a huge influence on the trajectory of policy easing by China's central bank, although it could put pressure on the Chinese yuan. It seems that the PBOC is not stepping in to defend the yuan, Farzin Azarm, managing director of equities trading at Mizuho Americas told CNBC's'Street Signs Asia' on Friday. 'But really, what's the point? ... I think at this point, it really is a function of what rates are doing. I think it's really a function of what the curve is doing in the U.S. And I think the central bank's going to let it play out, to be perfectly honest with you,' said Azarm. top economic agenda-setting meetingsDespite a flurry of stimulus measures since late September, latest economic data out of China showed the country is still contending with entrenched deflation, amid tepid consumer demand and a protracted property market slum
CHINA ECONOMY INTEREST RATES YUAN INFLATION
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