China holds benchmark lending rates steady as expected

China held benchmark lending rates steady for the fifth straight month in March on Thursday, matching market expectations.

The one-year loan prime rate (LPR) was kept at 3.1%, while the five-year LPR was unchanged at 3.6%.

In a Reuters poll of 33 market participants conducted this week, 29, or 88% of them expected no changes to either of the two rates.

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 October 2024, Chinese lenders slashed lending benchmarks by bigger-than-expected margins to revive economic activity.