China leaves benchmark lending rate unchanged amid better economic data

China kept its benchmark lending rates unchanged at the monthly fixing on Friday, matching market expectations, as a set of economic data suggested the economy is stabilising and a weaker yuan constrained further monetary easing.

The one-year loan prime rate (LPR) was kept at 3.45 per cent, while the five-year LPR was unchanged at 4.20 per cent.

In a Reuters survey of 29 market analysts and traders, almost all participants predicted no change to the one-year LPR, while all had expected the five-year rate to remain steady.

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

China cut the one-year benchmark lending rate in August but surprised markets by keeping the five-year rate unchanged.