China keeps benchmark lending rates unchanged as expected in June

[SHANGHAI] China kept benchmark lending rates unchanged as expected on Friday, after Beijing rolled out sweeping monetary easing measures a month earlier to support the economy.

The one-year loan prime rate (LPR) was kept at 3 per cent, while the five-year LPR was unchanged at 3.50 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 poll of 20 market participants conducted this week, all participants predicted no change to either of the two rates.

Last month, China lowered LPRs for the first time since October, while major state banks lowered deposit rates as authorities cut borrowing costs to help buffer the economy from the impact of the Sino-US trade war. REUTERS