China keeps lending rates steady; trade war raises bets for stimulus

Reuters - 21/04

China kept benchmark lending rates steady on Monday for the sixth successive month, matching market expectations.

SHANGHAI, April 21 (Reuters) - China kept benchmark lending rates steady on Monday for the sixth successive month, matching market expectations.

WHY IT'S IMPORTANT

Stronger-than-expected first-quarter economic growth data might have reduced the urgency for immediate monetary easing even as markets wager more stimulus is likely in coming months to keep growth on an even keel amid an intensifying Sino-U.S. trade war.

Policymakers are also wary of a weakening Chinese yuan and shrinking interest margins at lenders, limiting the scope for easing.

BY THE NUMBERS

The one-year loan prime rate (LPR) was kept at 3.1%, while the five-year LPR was unchanged at 3.6%.

In a Reuters poll of 31 market participants conducted last week, 27, or 87%, expected no change to either of the rates.

CONTEXT

China's gross domestic product (GDP) grew 5.4% in the first quarter, beating expectations, but markets fear a sharp downturn in t...
[Short citation of 8% of the original article]

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Original link, read full article here: https://www.reuters.com/markets/rates-bonds/china-leaves-lending-benchmarks-unchanged-expected-april-2025-04-21/
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