A China left unchanged the referential loan rates in the monthly fixation This Thursday (20), showing that the authorities are going slowly with the monetary stimulus as they prioritize financial and monetary stability.
The weakening of Iuan and the reduction of liquid interest margins in commercial banks limits Beijing’s monetary loosening scope as China faces new commercial tensions with Donald Trump’s new government in the United States.
The primary one -year loan rate (LPR) was maintained at 3.10%, while the five -year LPR remained at 3.60%.
In a survey by Reuters with 30 market participants held this week, none of them expected changes at either rate.
Chinese banks granted 5.13 trillion yuane (US $ 704.35 billion) in new loans in January, more than quadrupling December and surpassing analyst predictions.
However, the rhythm of loan growth compared to the previous year has reached a minimum record, indicating that demand for credit remains slow in the midst of economic uncertainties.
China’s Central Bank said last week that it would adjust its monetary policy at the appropriate time to support the economy, amid increasing external issues, especially the threat of a trade war climbing with the United States under President Donald Trump .
Trump announced a 10% rate on Chinese imports as part of a wide plan to improve US trade balance, triggering Beijing retaliation.
