China holds lending rates unchanged as economy recovers

ANKARA

China on Thursday left its benchmark interest rates unchanged, in line with market forecasts.

The one-year loan prime rate (LPR) – the medium-term lending facility uses for corporate and household loans – remained unchanged at 3.65% for the eighth consecutive month, according to the People’s Bank of China.

The five-year LPR, a reference for mortgages, remained at 4.3%.

China’s gross domestic product (GDP) grew 4.5% from a year ago in the first quarter of 2023, the highest in a year and above economists' forecasts largely due to its reopening and lifting of strict COVID-19 curbs that were in place for nearly three years.

Annual consumer inflation in China unexpectedly eased to an 18-month low of 0.7% in March, thanks to a slowdown in both food and non-food costs, according to the latest data.