People's Bank of China keeps base rate unchanged for fourth straight month

The People's Bank of China (PBoC) left its key lending rates unchanged for the fourth straight month at December fixing, as widely expected, amid a slowdown in economic activity due to rising COVID infections and efforts from the government to stabilize its economy in 2023 and maintain ample liquidity in financial markets in order to meet key targets.

Report informs, citing foreign media, that the one-year loan prime rate (LPR), which uses for corporate and household loans, was held unchanged at 3.65%; while the five-year rate, a reference for mortgages, was maintained at 4.3%.

The central bank last week maintained its medium-term policy rate at 2.75% while partially rolling over maturing loans. China last cut both LPRs in August to support the economy.