China keeps its benchmarks loan prime rate (LPR) at historic lows

China’s central bank kept its benchmark loan prime rate (LPR) to record lows, maintaining monetary conditions generally supportive as the country seeks to bolster a shaky economic rebound and stop currency depreciation.

The actions generally followed analysts’ predictions. The PBOC determines the LPR based on input from 18 recognised commercial banks.

In combination with the PBOC’s ongoing cash injections, this enables banks to decrease interest rates. Which is project to further loosen monetary conditions.

In addition to profiting from betting on a less aggressive Federal Reserve, the Chinese yuan increased somewhat against the dollar.

As the limits were removed, economic activity soared, but China’s manufacturing industry is still operating well below capacity.